Gottex Fund Management, the Swiss fund-of-hedge-funds giant, will launch its first Asia-focused fund-of-funds April 1. In fact, the Gottex Tiger Fund will be its first geographic offering. Peter Bennett and Gustavo Dominguez will manage the fund, according to Helen Sykes, head of client services in London.
The fund will seek high absolute returns but with less than half the volatility of the broad equity market. It will invest in at least 20 hedge funds focused on the Asia-Pacific region. Managers will be chosen from long/short equity, relative value, event-driven and trading strategies, according to an investor document. The Tiger fund will have “moderate correlation” to Asian stock markets, bond markets and foreign exchange indices, but lower correlation to commodity indices.
The fund will have a 1.5% management fee and 10% performance fee, said Sykes. The minimum investment will be USD100,000. Gottex Market Neutral Fund II, which invests across all the firm’s master portfolios, will begin allocating to the Tiger fund from April. Exposure to the new fund-of-funds will initially be limited, however, to a maximum of 10% of the portfolio. In addition, the Gottex Absolute Return Fund will be able to invest up to 20% in Tiger.