Hermes BPK Partners, the $2.1billion fund-of-hedge-funds (FoHF) manager, has rolled out an equity long-short hedge-fund-of-funds strategy worth $550 million, Pensions & Investments reports. An unidentified European institutional investor seeded the fund.
The company is looking to customize the strategy, which intends to capture two-thirds of the upside of global equity market returns while limiting losses to one-third. The strategy will replace bonds as a de-risking tool for pension funds and other institutional investors. Hermes BPK is a boutique within Hermes Fund Managers, of which the £36.7 billion BT Pension Scheme, London, is owner.
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