LONDON — Fixed-income hedge fund manager Wharton Asset Management opened its first hedge fund of funds, pH7 Fund Ltd. The new multimanager fund will draw on Wharton's 10 years of experience with collateralized debt obligation investing within its flagship Y2K Fund, according to a statement from the company, which runs $4 billion total.
"We have invested with other funds at times. However, pH7 provides us with the exciting avenue to (use) other astute and incisive managers," Maurice Salem, managing director and founder of Wharton, said in a statement.
While the firm's existing Y2K Fund has returned a cumulative 100% in the first five years of its existence, pH7's managers will target annual performance of 10% to 12% with 5% volatility. The fund is fairly concentrated, holding 20 hedge fund managers using relative value, fixed-income and arbitrage strategies with low market volatility and style correlation. The fund offers monthly redemption.