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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.