YouGov Alpha hedge fund targets $50 million

By Laurence Fletcher

LONDON (Reuters) - Polling and research group YouGov said on Monday it is aiming to raise up to $50 million (25 million pounds) for the launch of a hedge fund that will use polling data to highlight lucrative investment strategies.

The YouGov Alpha fund, which will be managed by investment boutique Four Capital, aims to gain an investment edge through YouGov's research, which it believes can highlight areas where the stock market is being too optimistic or pessimistic, for example in retail sales.

"We're looking to use it where the signals we get from the YouGov research are almost diametrically opposed to signals in the marketplace," said Four Capital fund manager Chris Rodgers, previously head of HSBC Halbis Partners' UK Equity team and a senior fund manager at Schroders (SDR.L).

"We're confident that for at least half the market by capitalisation we'll get insight of the key things that are relevant that will influence share prices."

Rodgers said he expects the YouGov (YOU.L) research to provide opportunities in sectors such as retail, leisure, travel, food retail, retail financial services and banks.

The fund, which will be launched early next month and be distributed by Numis Corporation (NUM.L), will hold at least 10 different pairs trades and target an annual return of at least 15 percent net of fees.

In a pairs trade a managers shorts -- bets on a lower price for a security in the future -- a stock in one sector and goes long another stock in the same sector, betting the latter will outperform the former, whether the overall market rises or falls.