Michael Goldman, a pioneer of the fund of hedge funds industry who launched Momentum Group in 1986, has opened a fund of funds business four years after selling to Italian group Pioneer Investments.

Goldman has set up Mazuma Capital with his Momentum co-founder, Matthew Nurick. It is registered in the UK and Australia and will target institutional investors. It will construct concentrated portfolios of established investment managers and, as with Momentum's funds, will specialise in low volatility and event-driven strategies. Edward Miller, a director of Pioneer Alternative Investments, is a non-executive director of Mazuma Capital. Momentum Group was an early mover in the fund of hedge funds industry. Goldman and Nurick sold the business to UniCredit's Pioneer Investments in 2002 for $110m (€85.8m), when it had $1.5bn under management. They joined Pioneer as joint chief investment officers of fund of hedge funds but Nurick resigned last year and Goldman left in February. The largest fund of hedge funds in Momentum's range is the $1bn Momentum all weather fund launched in 1995. It has returned 4.56% for the year to the end of June. Since its launch, it has made an annualised return of 8.69% and has a volatility of 3.13%. The fund combines non-traditional investment strategies, mainly event driven, and includes merger arbitrage, senior distressed debt, asset-backed lending, US equity long/short, split-price conversion and global trading. Pioneer Alternative Investments has €4.6bn ($5.9bn) under management in fund of hedge funds and single-strategy hedge funds.