Hedge Fund Reader : SRM Global Ready for Debut

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August 03, 2006

SRM Global Ready for Debut

The hedge fund industry is waiting with bated breath for the launch of the SRM Global Fund, simply because its founder Jon Wood has carved a niche for himself in the market by bringing in more than $2.4 billion over a period of six years for UBS AG, the bank based in Zurich, Switzerland. Wood is setting up his fund in Monaco with the help of four former colleagues, and is concentrating on US and European equities.

SRM Global is expected to be one of the biggest hedge fund debuts this year. UBS AG is investing $500 million in the fund for at least five years, a move which shows the confidence Wood’s erstwhile employers have in him. With hedge funds not registering remarkable results in the recent past, investors are rating the pedigree of funds high on their reasons to invest.

The fund will focus on trading shares of organizations that are merging, capital structure arbitrage which takes advantage of the price difference between related corporate securities, and investment in industries that are not doing so well or are in trouble.

Investors in SRM Global can choose from two fee structures – a 1 percent management fee to invest for a period of five years and 1.5 percent for three years. SRM Global will retain 25 percent of its profits.

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August 3, 2006 in Emerging Markets | Permalink