The $21 billion Yarra Capital Management has launched the Yarra Market Neutral Fund after assuming the management of Karara Capital's Karara Market Neutral Plus Fund.
Portfolio manager Andrew Smith, who has run the strategy since its inception in August 2016, has also joined Yarra. Yarra said there would be no change to the fund's investment philosophy, process, fees or its investment objectives but it will become easier for retail investors to access.
The fund's active strategy aims to generate positive returns in all market environments and it can take part in IPO's, placements, M&A arbitrage and both long and short positions. It holds between 30 to 100 combined long and short positions. The fund invests mostly in Australian-listed investments but can also invest in global real estate investment trusts, derivatives and cash.
Under Yarra, its minimum investment has been reduced to $10,000 from $250,000, and its minimum additional investment amount has been reduced to $1,000 from $25,000. It will also now offer daily applications and redemptions instead of monthly.
"We are thrilled to welcome Andrew Smith to Yarra and confirm the launch of the Yarra Market Neutral Fund. Andrew is an accomplished investor with an outstanding track record, and we couldn't be happier to welcome him., Yarra Capital Management managing director Edward Eason said.