| Cheyne Capital Management is planning to roll out | | | | distribution excluding the UK, Max Nardulli, said the |
| two Ucits III funds, covering its merger arbitrage | | | | firm expects there will be catalysts in the ailing |
| and long-short credit strategies. | | | | M&A market which the team will look to |
| The hedge fund giant hopes to launch an Ucits III | | | | take advantage of. He also points to reduced |
| global long-short credit fund over the next few | | | | competition in the space, as there are now fewer |
| months. The fund will be managed by John Weiss | | | | specialist merger arbitrage managers and prop |
| and David Peacock – who both head up | | | | desks chasing the same opportunities. |
| corporate credit – and will target investment | | | | Davies will tend to focus on transactions in the |
| grade credit. | | | | global M&A market, including Europe, Australia |
| The strategy will be based loosely on the firm's | | | | and South Africa. |
| long-short credit hedge fund and target a 6% to | | | | In December the firm launched its first Ucits III |
| 8% return above Libor per annum. | | | | fund, the Cheyne Select Convertibles fund, |
| Cheyne is also planning to launch a Ucits III global | | | | managed by Akin Akinloye, which targets a return |
| merger arbitrage fund in May in a bid to capitalise | | | | of 8% to 9% above Libor per annum. |
| on what they see as attractive opportunities in | | | | Nardulli added: ‘Whatever we do when we |
| the merger and acquisition (M&A) cycle. | | | | are thinking about Ucits III, we don't just clone |
| Simon Davies, who is CIO of the firm's | | | | our hedge funds. We want to make sure that it is |
| event-driven business, will manage the fund. | | | | what investors want and can still generate alpha |
| Commenting on the rationale behind the fund | | | | within Ucits III. |
| launch, Cheyne's head of international sales and | | | | |