Ex-Paulson Banking Experts Dismiss U.S., Europe For New Hedge Fund

Aug 10 2012 | 3:04pm ET

Two former Paulson & Co. executives are banking on banks outside of the U.S. and Europe's biggest financial centers.

Petrarca Capital, founded earlier this year by Robert Lacoursiere and James Fotheringham, is in the midst of its first fundraising. And it's telling potential clients that it plans to invest their money in financial stocks in Australia, Brazil, Canada, Chile, India, Russia, Sweden and Turkey—anywhere, it seems, except New York, London and Frankfurt.

Such countries are "levered to changes in global growth, and financial securities most sensitive to their domestic economies," the firm wrote in a marketing document obtained by Dow Jones Newswires.

While many hedge funds are racing into the financials space to take advantage of what they see as massive opportunities in a beaten-down Europe and a slightly less beaten-down U.S., Lacoursiere, Paulson's former head of global banks, and Fotheringham dismiss the thesis. In fact, the Petrarca partners say that France, Italy and Germany are home to some of the least attractive investment opportunities, while the U.S. has some moderately attractive ones.

"The financials sector is a levered play on macroeconomic cycles," Petrarca told would-be clients. "Performance dispersion is now increasing among global financials sector stocks."

Petrarca's first fund, when it debuts, will have between 15 and 25 longs and 20 and 30 shorts in its portfolio. It will focus on the largest banks, but will also look at brokerages, asset managers, insurers and specialty finance companies.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.