Neuberger Berman Technology Management envisages entering over-the-counter contracts to hedge exposure in its recently launched long/short technology hedge fund. Keith Ogden, coo in San Francisco, said the firm will likely buy and sell puts and calls as a means of hedging its cash portfolio. Selling derivatives on instruments such as the NASDAQ-100 Index Tracking Stock, which the firm can "cushion" with a cash portfolio, will also be considered with OTC trades sometimes attracting better pricing than listed derivatives, he noted. These trades would only form a small part of the overall fund, he added.
The Neuberger Technology Fund I and II launched in March with assets of USD100 million and the firm forecasts growing assets to around USD500 million in the next six-18 months. Lehman Brothers is the prime broker although the firm would shop around for best execution, he said.
