HSBC AM launches a hedge fund in Europe to take advantage of market volatility
1 APR, 2025
HSBC AM has announced the launch of the HSBC GH Luxembourg Fund, a new hedge fund strategy designed for European investors looking to take advantage of opportunities created by the uncertainty of global markets.
As a fund of hedge funds, the HSBC GH Luxembourg Fund offers access to what HSBC AM considers the top-tier hedge funds or managers in a single fund.
How HSBC GH Luxembourg Fund Invests
The portfolio will primarily be allocated to the existing flagship hedge fund strategy, HSBC GH Fund, which invests in 28 underlying funds that employ a variety of alternative strategies, including global macro, arbitrage, event-driven strategies and long-short equity at a regional, global or sectorial level. The HFRI Fund of Funds Composite index will be used as a benchmark.
The multi-strategy nature of the fund may offer lower market sensitivity (beta) compared to traditional long-only asset classes, which presents a potentially improved risk-return profile and minimizes negative impact, helping the fund to navigate around market volatility.
The fund, domiciled in Luxembourg, is launched following the success of the flagship strategy HSBC Global Hedge, which began in 1996 and has given an annualized net return of 7.34% per year from its inception in June 1996 to January 31, 2025, with an annualized volatility of 5.35% per year over its 29 years of existence.
With the ongoing uncertainty permeating global markets, investors are broadening their return avenues and seeking greater exposure to asset classes that traditionally benefit from more volatile markets. In this context, we believe that hedge funds offer a potentially attractive solution to diversify portfolios without compromising return.
The HSBC GH Luxembourg Fund further expands our distribution coverage in Europe, after receiving consistent feedback from clients in the region seeking exposure to alternative strategies. We believe the fund is well positioned to meet this demand, offering institutional quality hedge fund solutions backed by HSBC AM's global reach and investment capabilities.
Tim Gascoigne, senior investment specialist at HSBC AM
