Emerging markets hedge fund manager Fincere is launching a new global fund. The Fincere Emerging Markets Portfolio Fund will launch with seed capital of US$20 million, with a projected soft close target of US$250 million after two years.
The fund aims to take advantage of growth trends in emerging markets countries with a top-down approach to their economic outlook and secular trends. It will invest in fixed-income, commodities and derivatives.
Fincere’s new fund will be managed by Manuel Dopazo, founder, and Natalia Navarro. Prior to founding Fincere, Dopazo worked on the emerging markets desks of a number of New York investment banks.
“Emerging markets represent more than 50% of the world’s GDP and now hold two-thirds of the world’s foreign exchange reserves,” said Dopazo. “Over the past five years they have accounted for half of the growth in world exports, and yet, they still remain a minor part in the portfolio allocation of institutional and high net worth investors. We understand the underlying trends in these markets, and expect to realize the opportunities they offer with the launch of the Emerging Markets Portfolio Fund.”
The fund is targeting annual returns of between 15% and 20% net of fees, with a target volatility of no more than 20%. The minimum investment in the fund will be US$100,000. It will initially target high net-worth individuals who have benefited from the commodities boom in South America as its investor base, but will later focus on European and U.S. institutional investors.