Dalton creates novel two-speed structure for flagship Melchior European long/short fund

Wed Sep 22, 2010

By offering twin low-risk and higher-risk versions of the same long/short equity strategy, Dalton is backing its belief that offshore and onshore hedge fund products will suit different kinds of investors

London-based Dalton Strategic Partnership has unveiled a novel response to the fast-evolving UCITS hedge fund trend, creating two versions of its Melchior European long/short equity strategy with different risk/return characteristics to cater for what it sees as the two distinct investor bases for offshore hedge funds and onshore UCITS products.

Magnus Spence and Leonard Charlton

From the start of September, the firm is doubling the investment risk of its Cayman-registered Melchior European Fund in a bid to seek higher returns - and to make a clear distinction between those hedge fund investors who want a liquid, conservative fund and offshore investors who are seeking higher returns while accepting a higher risk profile.

The change will create greater differentiation between the Melchior European fund - which has been run successfully since October 2006 by former Goldman Sachs equity trader and GLG portfolio manager Leonard Charlton - and its sister...

ISSN: 2151-1845 / CDC10004H

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