Resurgam Capital Management, a newly-formed global macro shop, has launched its maiden hedge fund, which seeks to exploit inefficiencies across a diversified range of markets.
The Resurgam Growth Fund launched last month with proprietary capital from founder, Mark Ellis, who previously co-managed the Broadview Growth Fund before founding London-based Resurgam. Ellis’ resume also includes stints at Bear Stearns and Halifax Bank of Scotland.
The fund’s investment universe includes fixed-income, European equities, commodities and currencies. “Everything we trade is exchange-traded so we can liquidate our portfolio within an hour, if need be,” said Ellis.
The derivatives veteran is banking on continued volatility in the market to buoy his fund’s returns.
“We get an explosion of returns in stressful environments because we tend to be long volatility and fixed-income. This is exactly what we’re looking for and our biggest fear is that the market calms down and goes back to the 2003-2006 period. But we see continued volatility for the next few years,” he said.
Ellis said a good track record for 2008 and 2009 will be priceless for new and established hedge funds in the future, and with low global rates for some time, he expects the industry to have passed its low point and outperform other assets going forward. Month-to-date, the rookie hedge fund returned between 2.5% to 3%.
The fund has a minimum investment requirement of US$100,000 and charges a 2% management fee and a 20% incentive fee.