Gartmore adds small-cap fund

Gartmore is to launch a pan-European smaller companies hedge fund called Alphagen Cepheus on 1 March 2001, writes Fiona Henderson.

The fund is part of the Alphagen range, which includes the Alphagen Capella Euro fund and the Alphagen Hokuto Japanese hedge fund.

The lead fund manager, Jonathan Sharpe, has been running a model portfolio on a similar basis to Cepheus for a private client, which has led to investor interest in a hedge fund. Tamsin Quayle will also act as a fund manager.

Cepheus is a Cayman Islands-based corporate structure with dollar- and sterling-based share classes. The fund is aimed mainly at institutional investors, although it is open to individuals with a minimum of $1m to invest.

The hedge fund is looking to raise $100m, but will initially aim for $50m. After the $50m has been raised the offer period will then close. Approximately three months after this date the fund will look to raise the remaining $50m. The net exposure will be within a range of 30% net short and 30% net long. The total gross exposure is limited to 200% of net assets.