|UK-based fund manager Threadneedle has announced the launch of its latest absolute return fund, the Threadneedle (Lux) American Absolute Alpha Fund. According to Threadneedle, the fund is a SICAV under UCITS III regulation and will be managed by Stephen Moore, who also runs Threadneedle’s American Crescendo Fund.|
The American Absolute Alpha Fund is the first equity fund in Threadneedle’s Absolute Return Range. As its name suggests, this newest portfolio will primarily take long positions in publicly-traded North American equity securities and short positions in “equity swaps, total return swaps, and futures and options related to individual equity securities, related to exchange traded funds and/or related to indices” with financial derivative instruments. The American Absolute Alpha Fund is primarily directed towards investors with a high risk tolerance and a long-term investment timeline looking for capital appreciation and long/short-driven returns.
“We believe that this fund will leverage our existing resources and experience to the next stage of development for absolute returns,” commented Threadneedle’s Head of Distribution Campbell Fleming. “We have spoken extensively to our clients and they have indicated a great appetite for a product that will open up the US investment world in this form.”
Threadneedle was founded in 1994 and primarily manages the assets of private investors, pension schemes, insurers, mutual funds, corporations, and affiliate group companies. In 2007, Threadneedle launched its first UCITS III 130/30, the American Extended Alpha Fund.