Hedge Fund Reader : Hedge fund started targeting the Middle East

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October 16, 2005

Hedge fund started targeting the Middle East

The world economy going haywire due to rising prices across countries due to its linkages with the rising oil prices, however, one region in the world is not complaining, i.e. the Middle East and North Africa. And since many of these regions are oil producers they have benefited tremendously with the price rise of over 300 per cent in the last few quarters, where the price of oil on the NYMEX exchange has soared around $70 of per barrel. The nature of the business which was secretive and undisclosed in nature in now following international norms and practices prescribed in the developed countries. And in order to ride on the trend and attract westerners a new fund has commenced operations in the region. Mr. Khaled Abdel Majeed, founder of Mena Capital, which is based in London and Istanbul, has set up a hedge fund - Mena Admiral Fund, to trade stocks in the Middle Eastand North African regions. The Fund’s decision making process will surround across prevailing economic trends of the region, however it will buy or short sell stocks on its individual merit. The minimum investment required will be of $100,000, and will charge annual management fees of 2 per cent and performance fees of 20 per cent. Reuters Reports:

Many of the countries in the Middle East and North Africa are major producers of oil, the price of which has jumped nearly 300 percent since the September 9, 2001 attacks on U.S. cities. On Thursday it was trading around $61 a barrel. "There has been pressure from the United States on some of the region's countries to reform since 9/11," Abdel Majeed said.

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October 16, 2005 in Emerging Markets, Regulation, Research, Strategy | Permalink