HedgeCo.net ( New York ) Venus Capital Management, Inc. has launched a new Event driven fund, the Venus Special Situations Fund. The general objective of the Fund is to seek long-term growth of capital by investing in event driven arbitrage and special situation opportunities in Asia, particularly in India.<\/p>\n
Venus Capital believes that this is one of the best ways to generate risk-adjusted returns from India. The Fund aims for an absolute annual net return of 20%+ with a standard deviation of 8-10% or less, through a well diversified, multi-managed multi-strategy program. The fund expects to generate returns mostly from alpha with a very small contribution from beta. The Fund will largely invest in a number of equity-oriented special situation strategies in connection with mergers and acquisitions, government and non-government divestitures or spin-offs, non-bankruptcy restructurings, reorganizations, value with catalysts, intra-capital arbitrage opportunities and corporate actions such as share buybacks and special dividends. M&A activity in India was reported to be $18.2 billion in 2005, an overall increase of about 48% compared to 2004 according to Grant Thornton. In the first four months of 2006, $8.2 billion worth of deals took place.<\/p>\n
The Portfolio Manager is veteran fund manager Vik Mehrotra, CEO and founder of Venus Capital Management, Inc., a Boston-based, registered investment advisor with the SEC. Venus Capital, founded in 1994, manages over $300 million in Asia dedicated strategies and is focused on getting the best risk-adjusted returns from Asia, for its investors, which are mostly US and European fund of funds, pension funds, endowments & foundations and family offices. Venus Capital currently manages the India-focused, multi-strategy, market neutral, Venus Arbitrage Fund and the Asia ex-Japan focused, long\/short, Venus Acumen Asia Fund. Venus’ flagship product – the Venus Arbitrage Fund is now closed to new investors and has returned 12%+ per annum during the last 3 and 1\/2 years with almost zero beta.<\/p>\n
Venus Special Situations Fund had positive net returns of +0.41% during its first month of May, ’06 when most markets were down. Both onshore and offshore versions of the fund are available to accredited investors. Investors can request a private placement memorandum by visiting the manager”s website.<\/p>\n