Hot Shot Traders wanted for new fund

LONDON (Citywire) - Skandia Investment Management Ltd (SIML) is lining up 10 top UK absolute return managers for its new best ideas fund. Citywire can reveal that a long/short best ideas fund is being prepared with a host of leading managers.
The fund will be run by a total of 10 managers, each of whom will be able to pick 10 stocks.
Up to five of these holdings can be short positions, though each individual manager's portfolio will never be allowed to be net short. It is believed, however, that managers will have the capacity to go 100 percent long if they choose and not take any short positions. Sources indicate that a further three managers involved in the fund will be Old Mutual Asset Managers' AA-rated Ashton Bradbury, Cazenove Capital's Tim Russell and the manager of New Star Gemini fund, A-rated Tim Steer. The final position in the fund has been linked with managers at Gartmore and Polar Capital. The fund is to launch in the next two months and will complement the long-only UK and global best ideas funds which have brought in a combined 700 million pounds in assets. All the managers picked have experience of shorting stocks. This is believed to have been a firm requirement when Skandia was searching for managers as it was keen to avoid those who had only proven their capacity in the long-only market. Preparations for the fund have been kept secret with participants required to sign non-disclosure agreements but SIML has now confirmed plans are underway. A spokesman said: "After the success of the other two funds it is natural we would look at another similar vehicle and 10 more world class managers. The precise structure has yet to be finalised… though it will allow the managers to go long and short on holdings."