F&C launches Alt Ucits real estate fund

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London-based F&C Asset Management has launched a long/short equity fund designed to capitalise on inefficiencies in the pan-European real estate market.

The F&C Real Estate Equity Long/Short UCITS Fund has launched with €63.4 million in assets under management. It will be co-run by Raymond Lahaut and Marcus Phayre-Mudge.

The company had unveiled plans for the fund in October but this marks its official launch on the Irish Stock Exchange.

In the strategy, the two managers will concentrate on between 20 and 40 pan-European listed real estate securities. They aim to achieve absolute return with low volatility.

Operating a long/short approach is meant to allow Lahaut and Phayre-Mudge the ability to capture movements in the pan-European and underlying property markets.

Commenting on the launch, Phayre-Mudge said: ‘Using our ability and flexibility to take active positions using both long and short positions, we look to take advantage of the excellent opportunities for relative value trading that the low correlation between sectors, countries and companies in real estate provides.’

Lahaut previously ran the Aviva Investors European Real Estate fund between 2003 and 2007. He has 13 years of experience in real estate investing.

Meanwhile, Phayre-Mudge has previously run the Henderson HF Pan European Property Equities fund, this is as well as two property portfolios on behalf of Thames River.