Austrian alternative asset manager Erste Group is expected to launch its first UCITS hedge fund of funds in the first quarter of next year.
The fund is waiting for approval from the Austrian financial regulator where the fund is going to be domiciled. Once approved it is expected it will be called the Erste Alternative Diversified Fund.
The fund will invest in between 15 to 20 underlying UCITS funds and the mandate is to be diversified across different strategies and asset classes – including exposure to emerging markets. The fund is seeded internally with €50 million.
Austrian-based New Yorker Mark Cachia, head of alternative investments for Erste, says most of its clients are based in central European countries like Austria, Czech Republic, and Germany.