WEST PALM BEACH, FL (www.hedgeco.net) – The Swiss Finance & Property Corporation [SFPC] will launch a new real estate hedge fund. The new fund is to be launched in August 2005, according to thefirm�s released information. It will aim to �achieve long term sustainable absolute returns in Euro terms while protecting our partner�s capital by investing fundamentally in a long/short portfolioof equities in the listed real estate sector.�
The fund will use a top-down sector/country exposure determination and a fundamental bottom-up stock selection process as part of its investment style, striving �to profit from fundamental research �..exploiting short-term trading opportunities that arise due to inefficiencies in the market.�
Raymond Lahaut one of the portfolio managers said, �The SFPC Long/Short real estate fund is one of the few, if not only, real estate hedge funds in Europe. We will be able to profit from the fact that real estate markets around the globe do not move in tandem. Some markets or sectors will be in at the peak of the cycle where other markets or sectors will be at the bottom of the cycle. We will also use a fundamental approach to source undervalued and overvalued real estate companies.�
The SFPC fund will use long/short equity strategies in trading, maximum leverage to be employed will not exceed 200 percent according to the firm. To limit risk exposure, no position will exceed 10 percent of total portfolio size, and 5 percent for short positions according to the released information. The net exposure will be in the range of -25% and +150%.
The new fund domiciled in the Cayman Islands has a capacity of Euro 100 million at the moment. Goldman Sachs International has been appointed the prime broker, while Credit Suisse Services Cayman Limited will be the Trustee and Administrator. The fee structure includes management fee of 2 percent and performance fee of 20 percent, and the minimum investment requirement is EUR 250,000.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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