West Palm Beach (HedgeCo.Net)- Hedge fund Mobius’Alco annuounced plans to raise billions of dollars to create four new funds by June after it added to its portfolio of aircraft, ships, trains, property and renewable energy assets in the first quarter. Allco also said that it would consider selling hedge fund Mobius Financial Services, which has experienced a high default rate in its $700 million book.
The alternative finance house is confident of raising the billions despite encountering increasing investor displeasure over the poor performance of its existing listed funds. Allco wants to set up a transportation asset fund, a Singapore-based investment fund, a shipping fund and an infrastructure fund.
Most are expected to be wholesale funds, but Allco chief executive David Clarke said another listed offering could be considered. Since listing two years ago, shares in one of Allco’s existing funds, the Allco Max Securities and Mortgage Securities Fund, have tumbled to 63 cents from 93 cents.
Shares in Allco Equity Partners, the Allco Hybrid Investment Trust and Allco Hit have also fallen considerably since listing. Executive chairman David Coe said negative sentiment, most recently stemming from the global credit crunch, meant some of the funds were largely under-valued. But he acknowledged to shareholders that Allco “goofed up†by positioning some of them in the wrong market sectors.
Allco said its deal pipeline remained strong, but declined to provide specific earnings guidance at the AGM. “Markets are unstable so it would be questionable at this stage of the year to make a forecast broadly to the market place,†Clarke told reporters.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
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