New Star raises $130m

New Star International has raised more than US$130m in its second capital guaranteed hedge fund, bringing the total amount raised in its structured products to more than US$310m.

The fund is designed to provide investors with absolute performance over a six-year period. Exposed primarily to European and UK equities, the fund is managed by Richard Pease, head of European equities, and Alan Miller, New Star's chief investment officer.

Under the capital guarantee element, investors receive back 100%