JSM Financial: HSBC hopes to raise $100 million for emerging markets fund.

April 6, 2010 - PRLog -- HSBC’s new GIF GEM Equity Alpha Fund aims to deliver returns of between 10% and 15% JSM Financial was told, with about 10% volatility and limited market correlation.

The new fund is to utilize hedge fund tactics in an attempt to try and make money in all markets and will use an Uctis III structure, which allows it to use advanced financial techniques, according to a statement from the company available to JSM Financial.

HSBC has put the new fund under the joint management of Omar Negyal, who last year joined the firm from Lansdowne Partners, one of the largest hedge funds in Europe, and Nick Timberlake. Together the pair has around 30 years experience in investing in global emerging market equities.

Negyal and Timberlake will monitor a spectrum of about 700 stocks selected from MSCI emerging market nations and frontier markets for the fund, which JSM Financial understands is to take around 35 short and 35 long bets aimed at generating alpha on both sides of the portfolio.

The fund is to be seeded with $20 million and is expected to raise $100 million of new money this year. It is to be launched this month and will charge a 1.5% management fee on the retail share class and a 20% performance fee on returns above Libor.

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