Monte Cristo Launches Special-Situations Hedge Fund

Jan 23 2008 | 2:00am ET

U.K.-based Monte Cristo Capital this month seeded a new special-situations hedge fund that will make tactical investments in global macro and distressed events. The firm invested about US$3 million in the Monte Cristo Special Situations Fund.

Bruce Goodwin, head of trading at Monte Cristo, said the time is right for such a “broad-brushed” fund because of global dislocations in markets and a rise in distressed valuations.

“We’ll do any types of trading across asset classes,” he said. “It’s a global macro fund, but we’ll throw in distressed investing as well if we find things that make sense. We have a background in investing in distressed illiquid markets and we’re bringing in a portfolio manager on May 1 to invest in more developed markets and liquid investments.”

Goodwin added that the fund is currently taking tactical positions in the volatile commodities and foreign exchange markets but those positions can change from month to month depending on new opportunities that may arise.

The Monte Cristo fund charges a 25% management fee and a 20% incentive fee with a 5% hurdle and a US$100,000 minimum investment requirement

Monte Cristo, which was founded in 2005, currently manages a US$33 million long-only emerging markets fund.


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