Prime Capital launches fund of hedge funds
The independent asset manager and financial services provider Prime Capital AG has launched PCAM Select, a new multi-strategy fund of hedge funds.
PCAM Select expands Prime Capital’s absolute return offering and follows the highly successful PCAM Blue Chip Ltd., which was launched in 2007 and has been hard-closed since the end of 2017 after reaching an investment volume of approximately $850m.
PCAM Select’s underlying portfolio currently comprises 16 target funds that invest across the entire strategy spectrum. Up to 25% of the capital is invested in medium-sized, agile managers, while the majority of the capital is invested in established blue chip managers.
The fund aims for an annual net return of 7 – 8% with a volatility of 4 – 5%. It has the legal form of a Luxembourg SICAV, charges a management fee of 0.5% p.a. and a performance fee of 5%.
PCAM Select was launched on 1 August 2018, with an initial capital of approximately $60m. Based on existing capital commitments from various investors, the fund volume is expected to reach at least $125m by the end of the year.
Werner Goricki, board member and CIO said: “The fund offers institutional investors efficient access to a broad and robust strategy mix with clear return targets. In addition to the proven large managers, we have included selected smaller, focused hedge fund managers in order to further optimize performance. PCAM Select is therefore suitable for stabilising and diversifying portfolios with very low beta to the equity market.”