New Morrison fund targets FX

The fund will invest primarily in high-quality, fixed-income and foreign exchange, Morrison's area of expertise, but with some equity and derivatives investment.

Deutsche Bank is the prime broker, the fund will be domiciled either in Dublin, Cayman or perhaps the UK, and the charging structure will probably be 1% amc and 20% performance fee.

The fund is a wholly owned subsidiary of Desmond Dermot's International Investment and Underwriting in Dublin. This is the company's first hedge fund and is the start of a move into investment product provision.

Morrison is currently searching for people to complete his team. He's looking for two main traders, one bond and one equity, then an economist, a chief operating officer and a settlements supervisor to work in his Dublin and London offices.

The fund will look for dynamic changes and sudden moves away from equilibrium, rather than relying on a return to equilibrium that may never happen. Morrison is going to state a cap for his fund for the moment, as he thinks it will take many years for size to affect his strategy negatively. In this respect he compares it to Tiger Funds.

Morrison said: "When Julian [Robertson]'s fund had $6bn to $10bn, it was running fine it was only at $15bn that it got a bit difficult. So I'm not worried about that yet. If we have $500m by the end of next year, I'll be very happy."

Dylan Emery