Corazon Cap. Preps Leveraged Absolute Return Fund

Jul 31 2008 | 1:21am ET

A week after announcing its management buyout, Corazon Capital—the former Dawnay Day Milroy—is prepping a leveraged version of its Absolute Return Fund for launch within the next few months.

The Leveraged Absolute Return Fund is designed as a feeder fund and will invest directly into the Absolute Return Fund on a 1:1 levered basis. The US$142 million Absolute Return Fund currently has exposure to some 25 managers, including Harbinger Capital Partners, GAM UK Equity Hedge, Landsdowne UK and Thames River Nevsky. The fund is down 3.86% through June.

Joseph Paul, client director, said the firm is taking a wait-and-see posture towards the launch because of less-than-ideal market conditions.

“We’ve put the fund on hold because of market conditions and waiting for appropriate market timing opportunities to do so,” he said. “With the volatility in the markets, investors have concerns with prospects.”

While it looks to time the launch of the Leveraged fund, Corazon is going full speed ahead with the launch of two new share classes, U.S. dollar and euro, for its Alternative Investment Fund. The US$82 million fund was launched and for and seeded by a U.K. pension client in November, according to Paul.

To date, the Alternative Investment Fund is up 4.7% through June.

The Channel Islands-based firm currently manages some US$1.2 billion in assets.


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