HSBC to launch European absolute return fund

HSBC Global Asset Management is to launch a Ucits III European absolute return fund next month.

The HSBC GIF European Alpha Equity fund will seek opportunities - via a market neutral strategy - across developed Europe, implemented primarily through equities and equity swaps. The investment vehicle, which offers daily liquidity, will target equity-like returns with a maximum annualised volatility target of 10%, with minimal correlation to European equities. The fund will be managed by a team of four, with Vis Nayar as lead manager. In a universe of close to 700 stocks, the team will look to exploit fundamental equity pricing anomalies using both complementary quantitative and qua...