Trafalgar’s Jet Fund Takes Off

Jul 13 2007 | 11:07am ET

U.K.-based hedge fund shop Trafalgar Asset Managers this month launched the Trafalgar Kahala Jet Fund, which will focus on opportunities in the aviation sector, in partnership with aviation leasing specialists First Greenwich Kahala. The new offering began trading with US$20 million and a further $25 million in commitments slated for next month.

First Greenwich was established in late 2003 to acquire and lease used commercial aircraft and related debt securities. FGK’s activity initially centered on purchasing aircrafts in distressed situations and the company’s lessees have included Air Canada, Delta Air Lines, Northwest Airlines, United Airlines and US Air.

Trafalgar is teaming up with FGK to exploit “a niche opportunity set in aircraft acquisition and leasing” by acquiring “specific high yielding mid-life aircraft” and earning “high current yield from monthly rental income,” according to fund documents. The firm is trying to create value in its portfolio through extending existing leases and re-marketing to new operators. In performing its due diligence, the firm is employing specialist engineers to “optimise value in the assets through selective maintenance upgrades and reconfiguration.”

Trafalgar co-founder Theo Phanos is no stranger to the aviation sector, having worked on aerospace deals in emerging markets since the late 1980s. Phanos and Ahmed Hamdani, Trafalgar’s dedicated aviation analyst, are the portfolio managers for the new offering.

The Jet Fund charges 2% for management and 20% for performance, with a US$100,000 minimum investment requirement. Investors allocating to the fund within the first three months will get a 0.5% break on the management fee. There is a two-year lock up provision.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note