Geneva Firm Launches Multi-Asset Fund of Hedge Funds

Mar 10 2008 | 2:00am ET

Bedrock Alternative Asset Management this month launched its first fund of hedge funds, with plans for another in the near future. The Geneva-based firm’s Dimension Fund debuted with US$36 million in assets, and Bedrock expects a further US$20 million in commitments for its offering next month.

The firm characterizes the Dimension Fund as a “multi-asset class product” rather than a multi-strategy fund of funds, because multi-asset class managers can allocate and re-allocate capital tactically and strategically much faster than the process of rebalancing hedge fund positions in a fund of funds portfolio, according to the firm.

The fund will invest in 15 to 25 managers with a maximum allocation of 15% of its portfolio allocated to any one manager.

“Combining the expertise we acquired at both Pictet for Grégoire Haenni and LODH for myself we thought we could create a different fund of hedge funds,” said Daniel Penseyres, managing partner. “In addition to this, we concluded that 2007 was an interesting year for the hedge fund industry but an exceptional one to analyze the situations managers were faced with during its second half and early part of 2008, especially those impacted during the dislocations of August and November 2007. The output of our analysis and work is now in the form of this new fund.”

Penseyeres added that the fund, which does not invest in pure equity long/short strategies, is a complement to directional and pure arbitrage funds of hedge funds because of its low beta.

The firm is also planning to launch a more conservative and defensive fund of funds, the Bedrock Diversified Fund, within the next few months.

The Dimension fund charges a 1.75% management fee and a 10% incentive fee with a US$100,000 minimum investment requirement for Class P investors and a 0.75% management and 10% incentive fees with a US$5 million minimum subscription requirement for Class I investors.

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