HSBC targets emerging hedgie talent via fund launch

HSBC has launched the Next Generation fund with high net worth and institutional share classes, investing in upcoming managers in the hedge fund industry.

The fund, which offers monthly liquidity, invests in new and upcoming hedge fund managers globally aiming for an annualised target return of 12% to 15% over a market cycle, with a targeted volatility of 8% to 10%.

Based on a concentrated portfolio, the fund comprises 10-15 emerging managers investing across all hedge fund strategies.

HSBC said the underlying managers must have sound industry reputation and a proven track record at investment banks and established hedge funds.

The fund’s initial investments include new funds Avantium Liquid EM Macro, managed by Kay Haigh, as well as the Apson Global Fund managed by Edouard Salet.

The fund was initially launched in September 2011 to Founder Investors, and is approaching $100 million (£64 million) in assets under management.

Peter Rigg, global head of HSBC’s Alternative Investment Group said: ‘This fund provides our clients with direct access to a new generation of hedge fund managers combined with our proven track record in due diligence and portfolio management.’

The minimum investment for the high net worth share class is $25,000 (£16,000)