CMA Announces Fifth Structured Hedge Fund; Readies

The fund's investment objective is low volatility capital appreciation, which is in part achieved via diversification into between 30 and 35 funds and specific monthly liquidity restrictions. This launch comes on the heels of the launch of a structured fund not linked to CMA's Global Balanced Fund late last year Previous HedgeWorld Story. That fund has raised 50 million euros so far.

Mr. Mionis said the firm plans to launch an innovative leveraged fund by the beginning of summer that could grow to almost US$200 million in both euro- and dollar-denominated tranches. This fund would take a different approach than its predecessor that was launched last month.

CMA's Bermuda subsidiary is set to manage the Pantheon Funds Ltd., a Cayman Islands-registered hedge fund of funds with 65 million euro in assets. It's working with the fund derivatives group of BNP Paribas SA, Paris, to develop a series of structured products tied to the Pantheon Fund. The first such products, already launched, is a five-year 22.75 million euro note, which was sold to European institutional investors.

At the same time, CMA is preparing for growth and will open a New York office in another month. Two professionals will be opening the office, focusing on due diligence of U.S. hedge fund managers. As the U.S. office establishes its footing, the due diligence work will be split between the Geneva office and the New York offices where European and U.S. hedge fund and research would be handled respectively, Mr. Mionis said.

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