September 21, 2007
U.K.-based Wessex Asset Management, a US$454 million natural resources-focused hedge fund, is adding more bling to its portfolio with its latest offering, the Wessex Gold Fund.
The equity long/short fund, which will focus on directional and relative value plays on global gold and precious metals-related equities, is slated to launch next month with between US$50 million to US$150 million, with capacity for a further US$400 million.
According to a presentation obtained by FINalternatives, the firm believes that “Gold and gold equities are due a major move up,” and trading opportunities will derive from the volatility in the physical commodity and equities. Also, gold is a relatively non-crowded trade with few hedge funds having expertise in the sector and the existing gold funds being long-only products. Wessex plans to use leverage to provide an “additional edge versus long-only alternatives.”
The Gold fund charges fees of 1.5% for management and 20% for performance for Share Class A investors; while Class B shareholders pay 1% for management and 15% for performance. Both share classes sport a 12-month lockup period and have a US$500,000 minimum investment requirement.
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