Cantab Capital Partners LLP, the $5.5 billion hedge-fund firm led by former Goldman Sachs Group Inc. quantitative traders, will shut a pool that is regulated like mutual funds because of restrictions on commodity investments.
Investors in the CCP Quantitative UCITS fund, which has more than $320 million in assets under management, will be given the option of redeeming their money or moving to the firm’s hedge funds, Cambridge, England-based Cantab said in a statement today. The UCITS fund will be closed at the end of June.
Cantab, started in 2006 by former Goldman Sachs traders Ewan Kirk and Erich Schlaikjer, said it’s no longer possible to invest in commodities “within a UCITS wrapper.” Its decision follows guidelines published by the European Securities and Markets Authority last year to restrict the funds from trading indexes made up of multiple assets that are derived from a single commodity, such as oil.
UCITS, which are regulated by the European Union, allow hedge funds to raise money from individual investors. The structure places restrictions on leverage, gives clients details of holdings in a similar way to mutual funds and allows investors to withdraw their money in as little as a day. The name stands for Undertakings for Collective Investment in Transferable Securities.
The Cantab UCITS fund is designed to track the performance of its main hedge fund, the CCP Quantitative fund, with less volatility. The CCP Quantitative fund has gained 3.2 percent through April after rising 15 percent in 2012, according to data compiled by Bloomberg.
Other hedge funds that use computer algorithms to spot profitable trends in the prices of commodities, currencies and stocks rose 7.7 percent on average through April after falling 3.5 percent last year, according to Newedge Group SA.