The retail potential for hedge fund UCITS is huge, but
Dublin-based Merrion Investment Managers is not initially
focusing on that area.
Merrion decided to launch a hedge fund, the High Alpha Fund,
three years ago. Kevin Gallacher, director of Merrion, the
hedge fund returned more than 100% in a negative market
It is the success of this fund that resulted in Merrion
wanting to expand outside of the domestic market in Ireland
with new alternative investment products aimed at the UK and
European markets, which has around €1 billion ($1.3
billion) in total assets under management.
He says: "Given that there are thousands of traditional
hedge funds out there, we believe that the growing popularity
of UCITS provides us with an opportunity to establish a
presence in the market fairly quickly."
The Merrion European Absolute Return Fund is its first UCITS
hedge fund and was launched in April...