Swiss Firm To Offer Environmental Fund of Hedge Funds

Dec 4 2007 | 8:10am ET

After spending the last 12 months researching alternative energy hedge funds, Systematic Absolute Return is ready to roll out a dedicated environmental fund of hedge funds in January. The SAR Environmental Fund is a global and unleveraged vehicle, targeting returns of above 15% net for investors, and is set to launch with assets of between US$25 million and US$50 million.

The firm estimates that the universe of environmental hedge funds now includes approximately 70, with the vast majority having track records of 18 months or less and showing “sustained growth in both the number of players and strategies emerging in the space.”

“We’re kind of the first movers in this space in that a lot of other funds of hedge funds around that are doing more socially-responsible investing,” said Andrew Perry, director of business development Zurich, Switzerland-based SAR. “Those are typically long-only and aren’t hedged against market movements so we’re quite unique in that sense.”

The Environmental Fund will initially invest in 10 underlying managers utilizing a variety of green strategies, including renewable energy, clean technology, carbon finance, water, agricultural and timber projects, as well as ecological microfinance. It will have exposure to European, U.S. and Asian managers. Co-founder Arne Schmidt is the portfolio manager for the fund.

“Some of them are trying to do funky things, like shorting polluters and long environmental companies, which is not the perfect hedge, but it’s interesting that they’re trying it and making money off of it,” said Perry. 
 
The Environmental Fund charges a 2% management fee and a 20% incentive fee with a $500,000 minimum investment requirement.

SAR was founded in 2001 by Schmidt and Michael Ahrndt as a single-manager hedge fund and expanded into funds of hedge funds in 2003. The firm is currently managing $150 million in total assets.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.