Omni Partners has rebranded its highly successful Hartford Growth Fund and opened it to outside investors. The newly-dubbed multi-strategy Omni Global Fund began trading in February with some $60 million in assets.
Steve Clark, CEO of the British firm, has been trading his own capital in the Hartford fund since June 2001, earning a 44.6% return last year. The new Omni fund is enjoying its predecessor’s success, with returns of 13% through May.
“We decided to open it up to investors by launched it under Omni Global Fund, because it was a structure that was most recognizable to investors,” Zahra Merali, chief operating officer, said.
“We launched it with $25 million and we were also running a $35 million managed account for First New York Securities,” she added. “We’re currently just north of $100 million and are looking to raise $350 million before closing the fund for nine months. At the moment, we’ve got capacity commitments for $220 million from the people we’ve seen so we’re not too far off. If everything goes as planned we’re hoping to close by the end of the year.”
According to due diligence documents, the Omni Global Fund invests in merger arbitrage, restructurings, spread trades and capital restructuring. The fund “expects to make extensive use of short sales of securities, which it believes are relatively overvalued, and as part of hedging transactions.” The fund will maintain a fairly concentrated portfolio, with 30 to 40 positions, where the 20 largest positions can represent up to 80% of the portfolio. It may hold positions intra day up to several months and its portfolio will turnover on average approximately four times per year.
The fund charges 2% for management and 20% for performance, with a US$5 million/€5 million minimum investment requirement. There is a 5% redemption fee within 12 months of investing.