A third tranche of Nomura Culross Alpha Notes is expected to be listed on the London Stock Exchange at the end of September. This tranche comes only five months after the initial launch of the sterling-denominated fund of hedge funds (FoHF) portfolio.

The second tranche of notes is being submitted for listing at the end of August.

The first tranche appeared on April 30 and has gained an estimated 3.89% in the first three months of trading. This gives an annualised return of over 15%.

The Nomura Culross Alpha Notes are primarily designed for direct investment by discretionary and advisory portfolio managers and UK resident professional investors. Increasingly qualified private investors are also attracted to the notes.

Minimum investment is £50,000. The investment focus is on two FoHF portfolios managed by Culross Global Management.

In 2007 the sterling-denominated class of the Culross Global portfolio (the majority component of the Alpha Notes) returned 44.7% and in 2008 had a 5.16% return. In the first seven months of this year, this class was up 4.4%.

Culross Arbitrage, the second element within the Alpha Notes portfolio, was up over 10% in the first seven months of 2009.

Culross Global Management engages in thematic FoHF management. In 2000 it launched Culross Global Fund and in 2001 the Culross Global Arbitrage Fund followed in 2005 by the Culross Global H Fund.