Gulfmena Alternative Investments has launched its inaugural fund focusing on Middle East and North African (MENA) public equities.

The company was established earlier this year by former Shuaa Capital manager Haissam Arabi, who will manage the Gulfmena Arab Opportunities Fund.

The macro-directional absolute return fund will focus on MENA equity markets. The strategy is designed to take advantage of current short-term market inefficiencies, while being able to capitalise on long-term directional opportunities.

The fund will be registered as a mutual fund with the Cayman Islands Monetary Authority. Gulfmena Alternative Investments is licensed by the Dubai Financial Services Authority and is headquartered in the Dubai International Financial Centre.

The fund will have two share classes. Class A shares will have a minimum investment of $100,000 and a management fee of 2%. Class B shares, designed for long-term investors, will have management fees of 1.75% with a six-month lock-in.

Targeting annual returns over 15%, the fund aims not to exceed an annual volatility of 7%. Redemption is weekly with no gates.

Gulfmena has appointed Citibank as the fund’s global custodian and is in the process of appointing Ernst & Young as auditor.

The fund aims to be compliant with Global Investment Performance Standards (GIPS).

 “A debut flagship fund today should be a conservative hedge fund product, which is absolute return, unconstrained, multi faceted that is designed for both today and tomorrow’s MENA markets. We believe it is the ideal product at the ideal time with the ideal strategy,” commented Arabi.