Auriel unveils UK equity market neutral fund

London-based asset manager Auriel Capital has launched its second equity market neutral fund, focusing on UK equities.

The fund will take both long and short positions in FTSE100 companies, investing across all sectors in the most liquid shares available.

Its launch follows the June 2007 inception of a similar European-focused equity market neutral fund which has generated annualised returns of 8.5%.

Auriel founding partner Larry Abele said the company wanted to build its equity market neutral offering and was planning strategies in the future focusing on the Nordic region and the US.

He said liquidity was a key focus of the UK fund. Auriel wanted to be able to liquidate the portfolio as quickly as possible should the need arise.

Abele said the fund was launched with $11 million of seed capital and could reach a capacity of up to $400 million.

The fund is domiciled in the Cayman Islands with minimum investment of £1 million. Shares are available in US dollars, euros and sterling.

The fee structure is 2-and-20 with a high water mark. Redemption is monthly with 15 days' notice.

The UK fund's administrator is PNC Global Investment. Credit Suisse has been appointed as prime broker and PricewaterhouseCoopers in Dublin is the auditor.