New Firm Offers No-Performance-Fee, Separately-Managed Hedge Fund

Jan 19 2011 | 5:02am ET

A pair of European banking veterans is taking a page from the mutual fund industry for their new hedge fund.

CedarBridge Capital will eschew performance fees and offer clients daily liquidity. The new firm also aims to take advantage of another client-friendly innovation, structuring third-party investments as separately-managed accounts, with assets held by custodians in the names of clients.

“We wanted to do something different from the management and performance fee model pursued by most hedge funds,” co-founder Atul Bajpai told Financial News. “A lot of investors grew disillusioned by the underperformance of hedge funds during the crisis, and issues such as leverage and gating, so there was a real gap for separately managed accounts offering hedge fund strategies and a fixed-fee model.”

Bajpai, formerly CEO of European corporate and investment banking at Wachovia, and co-founder Ajay Soni, formerly deputy chief investment officer at KBC Alternative Investment Management, have been managing their own money using the CedarBridge strategies since last year. The two will continue to manage those assets at CedarBridge, assuring their interests are “fully aligned with our clients’ interests,” Bajpai said.

The liquid long/short fund will invest in stocks, bonds, convertible bonds, exchange-traded funds, commodities and currencies, FN reports.

Before joining Wachovia, Bajpai was global head of principal finance and securitization at Dresdner Kleinwort Wasserstein. He left Wachovia after its acquisition by Wells Fargo. Soni previously worked at Merrill Lynch and Deutsche Bank.

CedarBridge has yet to officially launch. When it does, it will charge 2% for management.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.