Terra Catalyst Fund began trading today on London’s Alternative Investment market (AIM) having raised £116 million (€ 143.5 million; 227 million) from investors.
The fund, which is being managed by London-based Laxey Partners, is seeking to identify undervalued securities and, according to nominated advisor and broker Fairfax, to close the valuation gap between the value at which a security is trading and its intrinsic value.
The fund is hoping to generate an absolute return for its shareholders primarily through capital growth by investment in property-related securities and intends to be substantially fully invested within six months, it says.
Investments will be made in companies which are either resident or active in Europe rather than US resident companies.
Its strategy could include holding large positions in just a few companies and making takeover offers for portfolios as well as short selling stock.