Ex-Cazenove managers Tim Russell and Chris Rice are planning to launch an investment trust within three to four weeks, after their new firm Sanditon Asset Management received FCA approval.
Soon after the boutique is also planning to launch a four-strong fund range for the two star managers, subject to regulatory approval. Chief executive Rupert Tyer told Wealth Manager that beyond the trust and open-ended fund launches, the boutique also has ambitions to attract other fund managers and launch more funds.
The duo is looking to raise no more than £50 million for the Sanditon investment trust, a long/short pan-European investment trust. It will be lead managed by Russell (pictured) and will offer investors a 20% stake in their new venture Sanditon Asset Management as one of its unlisted holdings.
The investment trust is unlikely to seed any of the open-ended funds that Sanditon is planning to launch. The duo do not intend to launch any B-share issues so that those that back them early are rewarded.
The Sanditon trust will invest predominantly in large caps, drawing on the expertise of the two managers. Russell will take a more concentrated approach that is less market neutral in comparison to the one he employed when he ran the Cazenove UK Absolute Target fund.
The fund range will include the Sanditon European fund, which is long-only, alongside the Sanditon European Select, a long/short fund, both run by Chris Rice.
Tim Russell will meanwhile run the long-only Sanditon UK fund, alongside the UK Select fund, which is long/short.
Neil Canetty-Clarke is finance director at Sandition, alongside Tyer, a former Cazenove non-executive director, is chief executive. The boutique has also hired Wallace Lo from Octopus Investments as head of operations.
The launch of Sandition comes at the same time that Woodford launches his eponymous boutique and first fund.