Wednesday, 30 July 2014
Last updated 13 hours ago
May 22 2008 | 2:00am ET
U.K.-based multi-strategy hedge fund shop Thames River Capital next month will open its Argentum Fund, an equity long/short vehicle investing in global financial stocks, including property.
The fund was launched last July and is managed by Jeff Thomson and Nic Ziegelasch. In its first nine months of trading the fund is relatively flat, down 0.37%.
According to a fund presentation obtained by FINalternatives, Argentum focuses on U.K. financial stocks with no market cap restrictions and screens some 750 names in the financials universe. Its portfolio holds between 40 and 60 positions with a gross exposure of less than 200% and net exposure between -50% and 150%.
Thames River is bullish on the financials sector because it believes valuations are at or close to historical lows on most measures and says earnings downgrades have been substantial. There is also extreme investor pessimism and increased opportunities for stock picking on both the long and short side.
On the short side, the fund is screening for stocks that are expensive stocks, have deteriorating or negative earnings momentum, stressed credit, and excessive leverage. Its hedging overlay strategy includes employing sector and market options, exchange traded funds and futures.
The Argentum Fund charge a 2% management fee and a 20% incentive fee with a US$100,000, €100,000 or £100,000 minimum investment requirement
Thames River currently manages some US$12.7 billion in total assets.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…