Sabre Fund Management, a quantitative hedge fund boutique managing liquid equity and futures, has launched a managed futures strategy. Known as the Sabre Adaptive Trading Fund, it has seed capital provided by a London based fund of hedge funds.

The fund focuses on macro market opportunities with limited exposure over the long term. It uses a broad range of individual strategies with varying time horizons and across all markets. The shortest holding period is a day, ranging to a few weeks at the longer end. The fund aims to provide low correlation to other major commodity trading advisors (CTAs).

The target return for the strategy is cash plus 8%-14% a year with volatility of 12%.

The management team is headed by Alexandre Guillaume and Dobromir Tzotchev, who both joined Sabre in September 2008. Guillaume and Tzotchev previously ran a $150 million managed futures strategy for Peloton Partners, the London-based hedge fund that liquidated in 2008. Before Peloton, Guillaume was head of global equity research at Aspect Capital in London.

The Cayman Islands-domiciled Sabre Adaptive Trading Fund has appointed Newedge as prime broker and LaSalle GTS Fund Services as fund administrator and custodian.

The fund is available in dollar and euro share classes with a minimum investment of $250,000, or €250,000. The annual management fee is 2% with a yearly performance fee 20%.