BlueCrest Capital Management has launched a multi-strategy, equity market neutral fund called BlueCube. The fund currently trades a universe of 300-500 European stocks and will eventually expand to include the US and Japanese markets.

The fund is looking to generate returns of 10%-15% with volatility of 5-8%.

BlueCube has initially started trading with four sub-strategies spanning three styles: technical, fundamental and sentiment-based. The company has developed a dynamic rotation method for allocating between the sub-strategies. It is based in part on methods used in the BlueTrend managed futures programme.

The fund is seeded with an initial $51 million in assets from BlueCrest’s $2.7 billion AllBlue Fund. This fund invests exclusively across a portfolio of funds managed by BlueCrest, including BlueCrest Capital International and BlueTrend.

The fund is not currently open to external investors but marketing of the fund is likely to begin in 2010.

BlueCrest Capital Management manages over $14 billion of assets for institutional clients.  It was co-founded in 2000 by CEO Mike Platt.