Appleton Capital Management plans to launch a fixed-income arbitrage and an equity market-neutral hedge fund. Both funds will use the full remit of listed and over-the-counter derivatives, according to Jeremy O'Friel, head of marketing in Dublin.
O'Friel said Appleton will launch the fixed-income fund at the start of October, but said it has not decided on a launch date for the equity fund because it has not decided on a manager, a process he compared to "digging for oil." It plans to start the fixed-income fund with USD20 million and should increase that to USD50 million within 12 months. O'Friel expects it to return around 10-12% per year with low single digit volatility and three times leverage.
At the moment, Appleton has USD110 million in currency funds.
