HedgeCo.net ( New York ) – Launch of Focus Capital \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 the first specialist Emerging Markets fund of funds asset manager<\/p>\n
The launch of a new independent specialist emerging markets asset manager is announced today. Focus Capital, headed by John Cleary who has more than 20 years investment experience, will uniquely look at global emerging markets from a different perspective as Focus Capital will invest exclusively in emerging markets by allocating between equity, bond, cash and hedge funds through a fund of funds approach.<\/p>\n
<\/p>\n
Headquartered in London, the firm will offer products for professional investors, private banks, distribution platforms and family offices, and will focus on providing absolute returns for clients regardless of market conditions by taking this new approach to investing in emerging markets.<\/p>\n
John Cleary, Managing Director and Chief Investment Officer, Focus Capital commented:<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe believe that over the long term emerging markets will continue to provide interesting investment opportunities but recognise that one manager is rarely good at everything and consider equity, bond and hedge funds should all be part of emerging market investing. We will utilise our experience and knowledge of this investment universe and make strategic asset allocation and specialist fund selection decisions to exploit the inefficiencies in emerging markets and therefore add value for clients.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cEmerging markets provide diversification benefits and utilising a fund of funds approach adds to this \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 diversification is the best risk management tool for this asset class. In addition, different parts of the investment cycle present different investment opportunities, for example, bonds tend to outperform equities during emerging market crises, and taking a fund of funds approach enables a shift in allocation to the more favourable strategy for a particular time in the cycle.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cNo one manager can outperform in all market conditions \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 especially in emerging markets \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 and when you are dealing with unpredictable markets, strategic allocations are key. Furthermore, investing in emerging markets is extremely resource-intensive which is why we are looking to exploit multiple specialists and invest in their funds using a focused and innovative investment approach.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
Focus Capital\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s first fund, the Focus Capital Emerging World Fund, will be a global emerging markets fund of funds designed to deliver absolute returns. It will invest in funds that invest in emerging and converging markets, including equity, bond, cash and hedge funds and is due to launch in the first quarter of 2007.<\/p>\n
Commenting on the opportunities in for emerging markets, John Cleary added:<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe believe emerging markets are currently undervalued and this combined with the diversification benefits of these markets ensures there are a number of investment opportunities to be exploited.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cEmerging markets already account for more than 50% of world output, 47% of the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s oil consumption, 42% of the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s exports, over 80% of world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s oil reserves and 85% of the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s population. Yet these markets account for less than 15% of global market capitalisation. Furthermore with at least 85% of the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s population, emerging market workers and consumers will represent a growing share of the world trade and will account for 99% of the projected growth in the global labour force. By 2050, 4 of the largest 6 world economies are predicted to be emerging markets. With increasing diversification and market capitalisations, opportunities for investment are continually evolving.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
A photo of John Cleary is available upon request.<\/p>\n
John Cleary has 20 years experience in the industry and most recently was Chief Investment Officer at Standard Asset Management. At Standard Mr Cleary was the fund manager for two American Express funds. Prior to joining Standard, Mr Cleary was the Head of Emerging Market Debt and Global High Income at Invesco Asset Management, where over a period of more than five years he re-established and built up the company’s capabilities in these strategies. His research responsibilities included the analysis of investment grade countries and global corporate credits. Prior to Invesco, Mr Cleary was employed by West Merchant Bank and Fisher Francis Trees & Watts, and SG Warburg. Mr Cleary\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s extensive experience in the industry includes managing Total Return and Benchmark style portfolios. He holds a BSc Management degree (International Business and Economics) from London School of Economics and has completed an Investment Management Programme at London Business School<\/a>. In addition, Mr Cleary is a Board Member of EMTA (Trade Association for Emerging Markets) as a buy-side representative.<\/p>\n For further information please contact:<\/p>\n Ben Curson\/ Julie Allison Penrose Financial +44 (0)20 7786 4874 FocusCapital@penrose.co.uk<\/a><\/p>\n John Cleary Focus Capital +44 (0)20 7617 7389 www.focuscapital.co.uk<\/p>\n Julie Allison direct line: +44 (0) 20 7786 4872 mailto:juliea@penrose.co.uk<\/a><\/p>\n P E N R O S E<\/p>\n F I N A N C I A L<\/p>\n 2nd Floor 30\/34 Moorgate London EC2R 6DN Tel: +44 (0) 20 7786 4888 Fax: +44 (0) 20 7786 4889<\/p>\n