Liberty Ermitage, the $3.2bn (€2.6bn) fund of hedge funds group, has invested $29m in Volteq Capital, a recently launched Dutch hedge fund, as part of its growing single-manager seeding programme.

Volteq's arbitrage fund was launched last month with around $35m of initial backing and plans to close to new investment at around $250m. All four partners at Volteq worked previously in the equity derivatives department at ABN AMRO.