Kairos Alternative Investments plans to launch the first long/short equity hedge fund in Italy in the coming weeks. The fund will use equity derivatives to short stocks, according to Alberto Altieri, senior analyst in Milan. He said the asset manager is waiting on approval from the Banca d'Italia, which it expects in the coming weeks, and will then launch the fund with EUR40 million (USD37.8 million) of capital.
Altieri said the fund will invest in European and U.S. stocks but with a bias toward U.S. investments. It will start out predominately long but has the ability to leverage 110% of its assets. The target return is in the high single digits with a volatility of around 4%, according to Altieri. The funds prime broker is Goldman Sachs.
