Bernheim Dreyfus Launches UCITS Version Of Flagship Fund

Jun 6 2011 | 10:26am ET

Paris-based investment manager Bernheim Dreyfus is launching a UCITS III version of its flagship Diva Synergy M&A fund.
 
Amit Shabi, a partner at Bernheim, told FINalternatives during a recent phone interview that the launch is in response to “growing investor demand for this kind of envelope.”

Diva Synergy is an event-driven hedge fund with a market neutral portfolio of roughly 40 liquid stocks that gained over 27% in 2010 on M&A activity. Shabi says it will not be difficult to replicate their successful strategy in a UCITS framework:

“Actually, it’s going to be quite easy for us because we manage a very liquid fund. We’ve managed it [for] more than four-and-a-half years with monthly liquidity but we were actually managing it as if it were daily liquidity. From the beginning, we decided to manage the fund with, first of all, no leverage and only using stocks in the portfolio, so all we have in the portfolio is stocks and futures—very liquid positions. Our core positions of capitalizations are capitalizations between $1 million and $10 million, fairly liquid instruments. There will be no problem to replicate on a daily basis—we’re launching a daily UCITS III and I believe that if not the first, we’re one of the first event-driven managers [to launch] a daily liquidity fund.”

Shabi says M&A activity is growing, most obviously in the U.S. but also in Europe. In fact, Bernheim Dreyfus expects M&A activity this year to rise 40% over 2010 and Shabi says they are “definitely...going to take advantage of this and surf on this M&A cycle.”

He’s particularly keen on pharmaceuticals, energy, technology and chemicals, as well as luxury goods which is, he says, a sector “that will start to move again.”

So far the firm has received commitments of $10 million for the new fund which offers two share classes: a retail share class with a minimum investment of $100 and an institutional share class with a minimum investment of $100,000 (or €100,000). The target for the fund, which began investing June 1 and is regulated by France’s Autorité des marchés financiers, is to be managing $100 million within a year.

Explaining why they’ve decided to launch a regulated vehicle now, Shabi says it’s simply a question of giving investors what they want:

“There’s a lot of demand, after the crisis, people had enough of gates, people had enough of lack of transparency and, in a way, in a UCITS format, managers have to be transparent and have to be liquid. So, in a commercial way, we have to address this and we have to address the investors’ needs.”


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.