Feyens invests in European/US stocks

Ex-Société Générale trader Stephane Feyens has launched an equity long/short hedge fund, the Entropy Fund, which began trading with approximately E5m on 13 January.

Feyens, managing director of Enthalpy Investment Management, said the fund will invest mainly in European and US stocks, with a target return of 10% to 15% and no more than 7% volatility.

'The strategy will be divided into three components; the standard long and short-term market positions normally associated with such a fund and also a number of arbitrage trades, including volatility arbitrage.'

The fund is domiciled in the Cayman Islands and listed in Dublin. Feyens explained an IPO was completed on 10 January and it is open to new investment for minimum investments of E250,000. Fees are 'fairly standard,' he said, with management and performance charges set at 2% and 20% respectively. 'Subscription fees are possible in the future, maybe up to 3% after distribution.'

Feyens spent years actively trading within SocGen's internal hedge fund in New York and at the firm's derivatives desk in Paris. He said: 'Times are tough for new funds launching at the moment, but having a knowledge of derivatives will help to manage the portfolio. In a volatile market, if you go wrong with your timing it can be very hard.'