Penso Unveils $225M Crisis Fund

Feb 13 2008 | 1:00am ET

New York-based Penso Capital Markets this month launched its Crisis Fund with $225 million in commitments. The new offering  invests across equity, fixed-income, commodity and foreign-exchange markets.

As the name implies, the fund expects to post its best returns during market crises, such as the looming U.S. recession and upcoming elections, with lower and possibly negative returns in benign and bullish times. Ari Bergmann, managing principal, said the strategy is looking to separate the trees from the forest to unearth dislocations in the marketplace.

“The strategy of the fund is to find opportunities in the market for trades with negative correlation to the benchmark, the MSCI World Index,” Bergmann said. “The market does provide risk-adjusted return opportunities because there’s so much movement and dislocation. Things might make sense on a micro basis but on a macro basis things are just out of completely sync, and that’s where we see opportunities.”

The Crisis Fund will be added to the firm’s Select Opportunities platform, a collection of macro event-driven strategies, as a new share class. The fund, which Bergmann co-manages with Penso’s managing principal, Steve Gross, charges a 2% management and 15% performance fee with a high-water mark and a one-year lockup period.

Bergman said the strategy will “pause” when it reaches $500 million. The firm currently manages north of $400 million in total assets.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.