Boutique manager launches first hedge fund

Boutique hedge fund manager Hale and Shepherd Investments has launched its first investment product — a mixed financial commodity fund.

The Hale and Shepherd Investment Fund will use a number of US-based commodity traders that operate in areas such as bonds, soft commodities and metals.

Executive director Wayne Matthews says the fund is aimed at both retail and wholesale markets.

“We will be marketing the fund to financial planners for the retail market and have set the entry investment at $10,300,” Matthews says.

“However, we suspect minimum investment will be more towards $50,000.”

Entry fees for the fund will range from zero to 3 per cent while the MER is between 40 basis points up to 1.5 per cent. There is a 10 per cent to 20 per cent performance fee.

“We have priced the fund aggressively for the wholesale market,” Matthews says.

The company realises attracting wholesale funds will take longer as it is a new player in the Australian financial services marketplace.

“We were established in 2000 and this is our first product, so the funds will need to become comfortable with us before investing,” Matthews says.

“It has taken us 15 months to establish the company and obtain operating licences.”

He admits that the events of September 11 slowed down the process, especially as the Brisbane based manger has established a US office in Chicago as well. The US office is managed by Emil van Essen.

Matthews says initial response to the fund has been favourable and the company is undertaking presentations to financial planners on the role that hedge funds play in an investment portfolio.

“We are appearing at financial planning seminars in south-east Queensland and we are getting positive feedback on the fund,” he says.