Cairn Capital Launches Sub-Financials Fund

Sep 26 2011 | 11:05am ET

London-based money manager Cairn Capital will launch a subordinated financials fund on October 3 with €45 million of committed seed capital from two of the firm’s existing investors.

UK-based Stanhope Pension Trust and the San Bernardino County Employees' Retirement Association have provided the startup capital for the new fund which will target returns of 15-25% annually, focusing on financial debt instruments—particularly legacy instruments within Europe.

The fund is intended to capitalize on the opportunities it sees in the sovereign and regulatory stresses currently affecting the market, taking advantage of recent selling pressure and high levels of dispersion, reports Hedgeweek.
 
Cairn has used the strategy to manage pension fund assets in segregated accounts since 2009.

Said Senior Portfolio Manager, Philippe Kellerhals: “We think that the asset class offers exciting opportunities longer term, but with particular value over the next 12 months. The market is under incredible stress at this point which is providing excellent entry points to certain assets that we think are mispriced, even under selected sovereign default and recessionary scenarios. Many of these assets are fundamentally sound but oversold."
 
The fund will be managed by Kellerhals, supported by financials analyst Folkert Jan van de Veer.
 
Cairn Capital has about $24.1 billion of assets under management and long-term advisory.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.