EUROPE - A $13bn (€10.6bn) European pension fund has tendered for up to five global macro hedge fund/tactical asset allocation (TAA) overlay managers via IPE-Quest.

The fund is looking for three to five managers who will be awarded $15m each with a 97.5% confidence level. Managers are required to create absolute return.

The ideal candidate has at least $5bn in assets under management with a track record of at least thee years.

The manager should seek to profit from long and short positions from a systematic tactical allocation between the major capital markets of the world including fixed income, currency, equity and commodity markets.

On a portfolio level the manager should categorize itself as “market neutral”, even though exposure on a single strategy level is not necessarily such.

The fund requires this to be achieved by exploiting many simultaneous strategies, although a more narrow set of strategies would not disqualify a candidate

The manager should employ a top-down global approach and may invest in multiple markets in anticipation of expected market movements. The manager’s strategy decisions must be based on a “well established and consistent framework whether it is quantitative or qualitative of nature.”

The fund also requires the managers primarily trade in more liquid instruments.

Managers should be open about disclosing information about strategies and positions. The closing date is August 31.

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