Sunday, 7 February 2016
Last updated 1 day ago
May 20 2010 | 2:25pm ET
A 24-year-old former analyst for Pharos Capital Group has decided to leave the confines of private equity for the hedge fund industry.
Alejandro Paschalides in March launched the Carina Capital Fund I, a global macro vehicle specializing in the energy sector. Paschalides said that the mispricings there were so great that he could not resist the opportunity to launch a hedge fund.
“I noticed that there was a variety of financial instruments and securities that were mispriced,” he said. “There are thinly-traded products, including the volume on long-dated crude oil futures relative to short-dated contracts, where the spread between prices several years out is very small relative to near dated contracts that no one is really looking at so I’m trying to take advantage of that.”
The hedgie rookie said his month-to-date returns are comparable to the precipitous fall of the energy sector in past months. Oil prices hit a seven-month low yesterday and the price of crude for June delivery fell $1.51 to $67.90 a barrel in intra-day trade this morning.
Aside from a down market for energy investors, Paschalides said his age and relative inexperience as a hedge fund manager are also big hurdles to overcome as far as fundraising goes, but he is optimistic that over the next year or so his returns will speak for themselves.
“Age is just a number, but returns are numbers as well and I think investors are smart enough to know which one matters more,” he said.
The Carina Fund has a two-year lockup provision, charges a 2% management fee and a 20% incentive fee, and has $250,000 minimum investment requirement.