Merrion unveils Ucits long short equity fund

Date: Thursday, May 6, 2010
Author: Hedge Funds Review

Dublin-based Merrion Investment Managers has launched a Ucits European long/short equity fund.

The Irish hedge fund also recruited a specialist long/short equity team to manage the Ucits III European Absolute Return Fund. The funds targets large to mid-cap businesses in the UK and EU markets.

The fund, launched in mid-April with a $20 million initial investment, is targeting an absolute return of 15% to 20% a year with annualised volatility between 7.5% and 10%.

The annual management charge of the fund will be 1.5% with a performance fee of 20% of return above the high water mark. The minimum investment is set at €250,000.

Michael Nicol, fund manager and who joined Merrion Investment Managers in April, previously managed long/short portfolios at Martin Currie, Glasgow Investment Managers and Pengana Capital.

Nicol told Hedge Funds Review its business strategy would be "fundamentally bottom up."

"We are looking at the whole market. We have been in the industry 25 years and looked at many sectors so we have the experience," said Nicol.

He added the company will pursue broad-based strategies as niche areas do not bring in enough returns.

Nicol said there had been interest in the hedge fund and Merrion was talking with a number of funds of fund providers about investing in the fund.

Kevin Gallacher, director at Merrion Investment Managers, said: "The Merrion European Absolute Return Fund is designed to provide investors with the absolute return characteristics of a hedge fund plus the transparency and daily liquidity of a regulated Ucits product. It enables investors to access the proven stock-picking skills of an experienced long/short equity team on a tried and tested administrative platform."

Northern Trust will be providing third party custody and fund administration services.