Cazenove Capital has announced plans to launch the Cazenove Absolute UK Dynamic Fund on September 7. The fund will aim to achieve a return of 10% or more a year over the medium term

Neil Pegrum and Paul Marriage will co-manage the fund which will invest across the UK equity market with an emphasis on mid and small-cap companies. Both managers have a pragmatic approach focused primarily at a stock picking level.

Synthetic shorting will be principally through contracts for difference (CFDs).

The approach will be unconstrained with between 30 and 50 UK stocks in both short and long positions.

The new fund's long positions are expected to be similar to that of the Cazenove UK Dynamic Fund, a sub-fund of the UK open-ended investment company launched by Pegrum in 2004.