Wednesday, 22 February 2017
Last updated 1 hour ago
Dec 22 2005 | 9:07pm ET
Magnum Fund Management is preparing to launch two funds on Jan. 1, the offshore MG Collateralized Debt Fund and the onshore Jericho All-Weather Opportunity Fund. According to David Friedland, president of Magnum U.S. Investments, the funds will invest in short-term notes backed by hard assets.
Initially, Magnum will market the funds to high-net-worth individuals, funds-of-funds and family offices, but as assets grow the firm aims to bring in institutional investors.
"With many other lower-risk strategies suffering periods of significant underperformance from time to time, [which has been] particularly evident this past year, it makes sense to find alternative strategies that can be robust through every investment cycle," said Friedland.
Each fund will launch with between $5-10 million in commitments. The offshore fund, which is managed solely by Magnum, will charge a management fee of 0.5% and a performance fee of 10%. The onshore Jericho fund, which is being managed by Magnum, Svirsky Asset Management and Jericho affiliate SRKD Management, will charge fees of 1% for management and 20% for performance. Each fund aims to close with total assets of around $200 million.