GAM added a new low-volatility fund, Multi-Diversified LV, to its lineup of hedge funds of funds. David Smith, chief investment director of GAMs multimanager hedge funds, is lead portfolio manager. The fund invests in the same underlying hedge fund strategies Mr. Smith uses for GAMs flagship Diversity fund, but with a different portfolio weighting to lower both volatility and correlation to equities, according to a news release. GAM MD LVs portfolio invests 50% of fund assets in arbitrage strategies and 25% each to equity hedge and trading strategies. The flagship fund is 50% weighted to equity hedge and 25% each to trading and arbitrage strategies.
The new strategy responds to institutional investors demand for a lower volatility, correlation and internationally diversified hedge fund of funds, Joseph Gieger, managing director-Americas, said in a news release.