WEST PALM BEACH, FL (HedgeCo.Net) – HSBC Leveraged GH Fund and HSBC Leveraged GH Fund (euro), are opened for investment. The funds aim to give experienced investors, who can tolerate an increasedvolatility, the opportunity to achieve increased returns ultimately through leveraged investment in HSBC GH Fund.
HSBC GH Fund’s investment objective is to provide a total return from a selection of hedge funds by utilising and trading a range of alternative strategies and markets worldwide. This includes long/short equity on a regional, global or sectoral basis, global macro, arbitrage and event driven strategies. As at the end of August 2004, HSBC GH Fund had total assets of USD247 million.
Available for investment in US Dollars and Euro, the minimum investment level for HSBC Leveraged GH Fund is USD25,000 and for HSBC Leveraged GH Fund – Euro, EUR25,000. The leveraged funds offer up to twice the participation in the returns of the target funds, less funding fees.
Jamie Murray, Head of Marketing, HSBC Republic Investments Limited, says: “These funds have been launched to enable experienced investors to invest in a portfolio of hedge funds, whilst leveraging the returns from the portfolios. Although leveraging can increase volatility, in these times of generally low returns, it provides the opportunity for higher investment returns than a standard fund of hedge funds portfolio. The fund launches complement the existing range of diversified and concentrated fund of hedge fund vehicles, and meet a perceived need amongst some investors for a leveraged fund of hedge fund product.”
The management fee for HSBC GH Fund (and HSBC GH Fund – Euro Hedged Class) is 1.75 % per annum, performance fee is 10 % of any return exceeding the benchmark (200 % of US dollar/Euro 3 month LIBOR) paid annually and redemption fee is 2 % of redemption proceeds for monthly redemptions. The Leveraged funds will also levy an administration fee of 0.25%.
