GAM has added to its range of fund of hedge funds with the launch of its Multi-Diversified LV.

Developed to deliver strong returns with low volatility and low beta over the longer term, the strategy is to be managed in the same style and underlying strategies as GAM’s flagship fund of hedge funds, GAM Diversity. Multi-Diversified LV will be managed by David Smith, with GAM’s 119-strong multi-manager investment team.

Alex Shaw, head of UK institutional and northern Europe, said: “GAM Multi-Diversified LV will capitalise on demand for lower volatility multi-strategy funds of hedge funds, especially amongst institutional investors. The product is also likely to be of interest to asset allocators and investors seeking to preserve capital during difficult equity market conditions.”

Mr Smith, chief investment director for GAM multi-manager, said: “Whereas GAM’s flagship fund of hedge funds, GAM Diversity, has approximately 50 per cent weighted to equity hedge, and 25 per cent to each of trading and arbitrage, Multi-Diversified LV will be weighted more strongly towards arbitrage, approximately 50 per cent, with a 25 per cent allocation to both equity hedge and trading to lower both volatility and correlation to equities.”