Prime Capital finds seed money for Ucits ‘hedge fund’

StartupA German investment firm founded in 2006 has raised seed capital from an asset-management ‘incubator’ that will invest in its hedge fund-style Ucits fund.

Prime Capital, an alternative investment house with €5.4 billion of assets under management, is receiving funding from NewAlpha Asset Management which should take the value of the Gateweay Target Beta Ucits fund up to about €40 million.

According to Morningstar figures the fund had €18.25 million under management at December 31, 2015, and was launched in September last year.

NewAlpha, which launched in 2013 as an incubator for firms it considers to be innovative, has sourced its investment from large European institutional investors who the firm says are “committed to increasing their strategic allocation to innovative investment strategies”.

The Gateway fund aims to deliver positive returns similar to those of certain diversified hedge fund indices, which invest in or have exposure to global equity and credit markets.

Morningstar figures show a year-to-date return of 1.6% and annual management charge of 0.5%.

Antoine Rolland, chief executive of NewAlpha, said that more and more investors were showing an appetite for Ucits funds that follow a quantitatively driven, absolute return strategy.

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