Barclays Capital will launch what it believes to be the first principal-protected notes on an emerging hedge fund manager fund of funds in a venture with HFR Asset Management.HFR today announced what it claims is the first emerging managers hedge fund of funds on a controlled infrastructure platform. The fund will initially comprise 21 funds, each with two years or less of tenure. Barclays Capital has an exclusive licence to offer structured products on the fund.
Barclays had not been able to confirm a timetable as SRP went to press. However, Antti Suhonen, head of fund-linked derivatives structuring at Barclays Capital, said the way HFR has incorporated its experience in risk control into the fund has allowed it 'to bring our full range of structures into play'.
“Barclays Capital has provided some very well costed and constructed structured products to enhance the proposition for clients,” added HFR Asset Management md John Godden.
HFR said the emerging managers platform is a direct response to evolving marketing conditions in hedge fund investing. Young managers, though historically higher risk, have often delivered better returns to hedge fund investors, because of their ability to capitalize on niche investment opportunities and to invest without negative impact on the market as a whole.
The HFR platform has daily independent pricing, with positions, trades and cash positions monitored and reconciled with managers on a daily basis and verified by prime brokers; risk guidelines are strictly enforced, said the firm.
