Trafalgar Asset Managers next month is launching a special situations fund with between US$50 million to US$100 million. The firm is anticipating strong demand for the new offering fund and expects a soft close by Oct. 1.
The Trafalgar Special Situations Fund will invest in mergers, activist trades and post-event value trades, such as debt for equity swaps, rights issues, cash distribution and spin offs. Its positions are hedged with option protection, futures and exchange-traded funds.
The fund charges a 2% management fee and 20% performance fee, with a minimum investment requirement of US 100,000 or $€100,000. It has monthly liquidity and is targeting annual returns in excess of 20%.
Co-founders Lee Robinson and Theo Phanos founded Trafalgar in 2001. Phanos previously worked for Bankers Trust, Lehman Brothers, and the high-yield and distressed debt group at Deutsche Bank. Robinson previously built and managed Tudor Capital’s global event-driven business. The firm currently manages over $2 billion in nine hedge funds.