ED Capital Management is readying a UCITS III-compliant hedge fund focused on the former Soviet Union.
The New York- and Moscow-based firm will launch its Hudson River Russia Growth Fund with €10 million in initial assets. Management by Elliott Daniloff and Ilya Kravets, the fund will have a long-biased portfolio of between 30 and 50 names, investing in both stocks and equity derivatives. In addition to Russian investments, the Growth fund will also seek opportunities in other members of the Commonwealth of Independent States.
"Russia has substantially outperformed both emerging and developed markets while still remaining at attractive valuations," Daniloff told Hedge Funds Review. "We strongly believe that this is the right time to invest in Russia."
The Growth fund will be part of Alceda Fund Management's UCITS platform. ED Capital said it will first focus on marketing the fund to European and Asian investors before possibly expanding that remit to the Middle East, Latin America and the U.S.
Investors will pay management fees of 1.5% or 2.5%, depending on the asset class. Investors in classes C and D, who pay only 1.5% for management, will also pay a 20% performance fee. Classes A and B have a €10,000 or US$10,000 minimum investment requirement, while classes C and D have a €250,000 or US$250,000 minimum requirement.
ED Capital, whose flagship Hudson River Russia Fund invests in small- and mid-cap value stocks, said it hopes to launch addition former Soviet Union-focused UCITS funds.