Cazenove Fund Management, the asset management arm of the UK investment bank, has launched its first European hedge fund. It is a long/short equity fund, and its second foray into the hedge fund market.

Chris Rice and Steven Cordell, portfolio managers on the pan-European equity team, will manage the fund. It aims to provide absolute returns that are uncorrelated to equity markets. Cazenove will charge a 1.25% annual management fee and a performance fee of 20%.