LONDON (HedgeWorld.com) - Isosceles Asset Management is close to launching an offshore U.S. equity fund with a fee structure that includes a performance fee component.
The fund, Isosceles America Fund, is scheduled to open on March 3 with a listing on the Dublin Stock Exchange. The large- and medium-capitalization equity fund charges a management fee of 1.25%, which is below average according to Isosceles, and charges 15% of performance above the Standard & Poor’s 500 stock index. As a result, the fund needs to outperform the S&P by 300 to 400 basis points to earn fees comparable to the average offshore fund fee, said Dale Gibson, a founding partner for the firm.
The fund will use a high watermark but will also earn a performance fee when the fund earns a negative return, however, only for as long as the fund beats the S&P 500. The performance fee is calculated over a six-month period.
Once Isosceles becomes profitable with its long-only strategies, it will begin the process of launching hedge funds. Isosceles went live in November and originally had planned for a February launch of the fund.
