May 6, 2015 / 9:11 AM / 4 years ago

Candriam raises $84 million in systematic long short equity hedge fund

LONDON (Reuters) - Candriam Investors Group said it had raised 76 million euros ($84.3 million) in a new hedge fund that bets on rising and falling stock indexes based on mathematical models and was now looking for fresh external capital.

The fund was launched in December with just 15 million euros in assets and has since attracted investors such as private banks and insurers, said Candriam, part of New York Life Investment Management Group.

Candriam’s head of systematic funds, Steeve Brument, said assets in the fund could double from current levels by the end of 2015. Candriam manages 89 billion euros in assets across its funds.

“At a time of so much macroeconomic and geopolitical upheaval, this approach takes advantage of trends as well as volatility in the equity markets,” Brument said.

The fund, which invests in equity index futures globally, has returned 6.6 percent so far this year, beating a 5.4 percent rise in the Eurekahedge Long Short Equities Hedge Fund Index.

The fund charges a 0.75 percent management fee and takes a 20 percent cut in any outperformance.

($1 = 0.9019 euros)

Reporting by Nishant Kumar; editing by Simon Jessop

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