New Star Absolute Return Fund
Investment objective
To provide shareholders with absolute returns.
Investment policy
The fund will seek to produce absolute returns through investment in a range of New Star hedge fund strategies. The fund's portfolio will be an actively-managed diversified portfolio of predominantly equity-related positions.
Key features
- Managed by Mark Harris and Craig Heron with active allocation in New Star’s hedge fund strategies on a risk-budgeted basis (see Fig. 1 below)
- Targets total returns in excess of LIBOR
- Provides exposure to New Star's equity long/short hedge fund strategies within a single portfolio
- Underlying strategies (see Fig. 2 below) are managed by 15 experienced New Star fund managers with 13 years' average investment experience working alongside more than 60 other investment professionals and benefiting from more than 2,500 company meetings each year at New Star’s offices
- Growth shares offering a capital-only total return
- Income shares paying a dividend of 5p per share per annum and the balance of return as capital
Fig 1: Criteria for allocation to individual New Star hedge fund strategies
Fig 2: New Star Absolute Return underlying hedge fund strategies
