Two independent asset managers have united to launch a Europe-focused market-neutral fund, with several institutional investors already on board.
The new launch, which formally takes place on 14 February, is a combined effort from Luxembourg-based LRI Group and Wollerau-based group M17 Capital Management.
The European Market Neutral Ucits fund will have a concentrated approach, with 30-60 positions and a target return of 10-15% per annum net of fees.
In fund literature, the two companies said the new Alternative Ucits fund offers a ‘juicier’ take on traditional market-neutral long/short equity funds, capturing alpha with individual, sized-up ‘best ideas’ positions while managing risk exposures tightly.
The fund has launched with several pension funds and institutions on board as anchor investors, amounting to €191 million in assets so far.
The fund is aimed largely at pension funds, family offices and high-net-worth individual investors, predominantly in Germany, Switzerland, the UK and Scandinavia.
Commenting on the launch, Markus Matuszek, CIO of M17 Capital Management, said: ‘Our investment approach is aimed at being bottom-up, market-cap agnostic yet liquidity cognisant.
‘We apply a rigorous, fundamental and value-oriented approach using consistent decision making processes to minimise human bias. Both our long and short ideas must generate alpha across various investment time horizons.’
Matuszek is the founder and managing partner of M17 Capital Management and has extensive experience in the asset management and alternatives industry. He previously led the asset management and advisory firm Hermes Capital Management.