HSBC Asset Management (HSBC AM) has announced the launch of the HSBC GH Luxembourg Fund, a new hedge fund strategy designed for European investors looking to tap into opportunities created by uncertain global markets.
As a fund of hedge funds, the firm writes that the HSBC GH Luxembourg Fund offers access to what HSBC AM considers top tier hedge funds or managers in a single fund. The portfolio will primarily allocate to the existing flagship hedge fund strategy HSBC GH Fund which invest in 28 underlying funds that employ a range of alternative strategies, including global macro, arbitrage, event-driven strategies, and long-short equity on a regional, global, or sectoral basis. The HFRI Fund of Funds Composite index will be used as a benchmark.
The Fund’s multi-strategy nature can offer lower market sensitivity (beta) against traditional long-only asset classes, presenting a potentially improved risk return profile and minimising downside impact, helping the Fund navigate market volatility.
The firm writes that the Luxembourg-domiciled fund comes following the success of the HSBC Global Hedge (“GH”) flagship strategy which launched in 1996 and has delivered an annualised net return of 7.34 per cent p.a. from its inception in June 1996 to 31st January 2025, with an annualised volatility of 5.35 per cent p.a. over its 29-year life.
Tim Gascoigne, Senior Investment Specialist at HSBC AM, says: “With continuing uncertainty pervading global markets, investors are expanding their avenues for returns and seeking greater exposure to asset classes which traditionally benefit from choppier markets. Against this backdrop – in our view – hedge funds provide a potentially attractive solution to meet the need of diversifying portfolios without compromising on return.
“The HSBC GH Luxembourg Fund further expands our European distribution coverage following consistent client feedback from the region seeking exposure to alternative strategies. We believe the Fund is well-positioned to meet this demand by offering institutional-quality hedge fund solutions underpinned by HSBC AM’s global reach and investment capabilities.”
The HSBC GH Luxembourg Fund is available to both institutional and wholesale investors across Switzerland, Italy, Spain, France, Belgium, Luxembourg, and the Netherlands.
