WEST PALM BEACH, FL (HEDGECO.NET) – Liberty Ermitage Group has formed a joint venture with Volteg to offer hedge funds, according to a press release. The new partnership, The Strategic Partners Fund,Inc. [SPF] was founded by Jan Ebel Bos, Eelco Rooimans, and others, together with Niek Koster, (Partner Risk Management and Trading) and Daniel Notermans (Chief Financial and Operating Officer).Their first fund is the GED Arbitrage Fund Limited. It is a volatility arbitrage fund, launched a few weeks ago, with over $35 million in assets under management.
Four of the founding partners have worked at ABN AMRO. Hans Peter van Ketwich (Partner Risk Management and Trading) has been in the equity derivatives business since 1989, setting up and managing the equity derivatives businesses for ABN AMRO Bank.
Commenting on the new product, Jan Ebel Bos said, �We believe that our approach to volatility arbitrage is slightly different from some of our competitors in that we run a long/short volatility portfolio instead of a long only volatility portfolio. We aim to generate absolute returns largely uncorrelated with equity or bond markets, instead of returns which are negatively correlated to equity markets.�
Ian Cadby, Chief Investment Officer of Liberty Ermitage in his statement said, �We expect this fund to be well received by hedge fund investors, � because the returns are expected to have a low correlation with global equity and bond markets and many other popular hedge fund strategies.� Cadby added, �There are few European based Volatility Arbitrage managers and this product should, therefore, provide a welcome relief to those investors who are concerned about strategy concentration risk in constructing their portfolio�.
The annual management fee of the new fund is 2% and the performance fee is established at 20%, based on the increase in net asset value, over a high water mark. The fund offers monthly redemptions with a redemption fee of 2% in the first 12 months.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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