London-based Cube Capital has opened its $100 million event-driven fund, Cube Global Opportunities, to outside investors.
CGO was launched in May 2009 and the firm says it has not had a down year since inception (it targets 15% annual returns). The fund invests long/short in equity, debt and derivative securities globally, predominantly in Asia and Europe.
CGO “focuses on dislocated markets and disruptions within sectors and industries, in which changes in the perception of the key risks for the sector leads the traditional investor base to seek to exit the sector almost regardless of price.”
Said Nick Linnane, senior portfolio manager for the fund, in a statement: “Having identified sectors that appear interesting, the portfolio management team has to do extensive fundamental work on the sector and the relevant companies and securities, as well as the potential catalysts that may cause a subsequent re-rating or the securities; carry also comes into play in the case of credit.”
Cube says it prefers sectors where its team has prior experience and/or those that are likely to provide opportunities for several years.
Cube Capital is a global alternatives firm that employs 49 people and manages approximately $1.3 billion. The company has offices in London, Hong Kong, Shanghai, Beijing, Moscow and Kiev. Its activities are spread across three principal platforms: multi-manager hedge funds, single-strategy hedge funds and real estate.