Former Permal Analyst Launches Central Asia Fund

Jan 19 2007 | 11:30am ET

Clemente Cappello, a former analyst of a fund affiliated with Permal, last month launched the Sturgeon Fund, a Cayman Islands-based vehicle which primarily invests in fixed-income and equities of the Central Asian countries of Azerbaijan and Kazakhstan.

The fund employs a top-down investment style investing in local fixed income and equities. It holds equities while hedging oil prices because the local economies are so dependent on the latter, according to Cappello, who is optimistic about the region’s economy.

“We’re very bullish on the fact that there are a lot of market changes going on in Kazakhstan and Azerbaijan, and we really think that the liquidity is going to increase,” said Cappello.

The vehicle is also looking for private equity-type opportunities in regional listed companies with very little liquidity, where it would deploy equity without leverage into deals. It will also invest in regional real estate as part of its p.e. mandate.

The fund, which is currently managing some $10 million, charges fees of 1% for management and 15% for performance for a two-year lockup, and 1.5% and 20% for one-year lockup. The minimum investment requirement is $100,000.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...