Monday, 30 May 2016
Last updated 3 days ago
Sep 10 2008 | 1:01am ET
A year after transforming itself into a fund of hedge funds shop and launching its maiden funds, Norwalk, Conn.-based ABR Capital is back with a follow-up offering.
The firm in June launched the ABR Signature Select Insurance Fund, a multi-strat fund of funds that’s similar to its flagship product, but for the institutional market, specifically insurance companies. The Signature Fund is currently invested in five underlying managers and is looking to ramp its roster up to 15 once the capital starts to roll in.
Founder Alan Rosenthal said he’s offering a product to insurance carriers that can generate alpha in any market environment.
“Most of the products that they offer investors are long only, mutual fund-type products but they’re all down and losing money,” said Rosenthal. “We’re showing them a product with a tremendous track record.”
To capture the alpha that has eluded many hedge funds to this point, Rosenthal said the Signature Fund will only invest in brand-name, billion-dollar plus funds that make headlines with consistent returns and low volatility, or what he dubs “sleep-well-at-night funds”.
Rosenthal added that the fund of funds has made major entries into the insurance market, including Sun Life Insurance Company’s private placement life insurance policy owners. The firm is currently in negotiations with other insurance carriers such as AIG and Prudential.
ABR is looking to looking to raise $100 million for its latest offering, which returned 0.58% in June and 0.19% in July. The fund charges a 1.3% management fee and a 10% incentive fee. It also sports a one-year lockup.
ABR currently manages $6 million between its flaship Capital Fixed/Option Income Strategic Fund and its latest offering.