Sextant Caps Water Fund At €250 Million, To Launch New Hedge Fund Next Month

Feb 5 2007 | 2:06pm ET

Toronto-based Sextant Capital Management is making a splash with its latest fund. The Caymans-based Sextant Strategic Global Water Fund Offshore Ltd, which launched just this month, is planning to close in mid-February with €250 million in commitments. According to the firm, the majority of the fund’s investors are Middle Eastern and European-based family offices and high-net worth individuals.

“Water is the most valuable natural resource and this is a great sustainable fund that we’ve put together,” said founder Otto Spork. “This is different than some of the larger funds because we’re not buying large-cap stocks. We’re buying small-cap stocks that we believe have value going forward rather than buying a conglomerate with 3% exposure to water.”

The new fund charges fees of 2/20 with a €/US $500,000 minimum investment requirement.

Investors who miss the boat on Sextant’s global water fund need not feel left out to dry. Next month, the Canadian-based firm is rolling out its Caymans-based Sextant Strategic Hybrid Hedge Resource Fund Offshore, which is a mirror of its onshore fund, Sextant Strategic Opportunities Hedge Fund LP. However, the new offering will have additional exposure to the bio-fuels and oil sands sectors in addition to the exotic and industrial metals, oil and gas sectors and, of course, water.  

In other firm news, Sextant’s onshore Sextant Strategic Opportunities Hedge Fund LP finished 2006 up +117% in its first 11 months of trading on the strength of its uranium and water investments in the latter half of the year, according to Spork. The fund is currently managing some $10 million in assets and charges fees of 2/20 with a minimum investment requirement of C$150,000. 

Sextant was founded in 2005 and currently manages some $350 million in total assets.   

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