November 03, 2006

Record Amount Raised By Single-Strategy Fund

-- By Pushpa Sathish, Staff Writer

A listed, single-strategy hedge fund vehicle has succeeded in raising €440 million, a record for any listed fund. The Sark Fund, the flagship of hedge fund firm Boussard and Gavaudan (B&G), is the first single-strategy listed hedge fund vehicle in the world which deals in arbitrage in the equities and credit markets. Set up in 2002 by former executives of Goldman Sachs, Emmanuel Gavaudan and Emmanuel Boussard, the fund has a CAG rate of 8 percent. The amount raised exceeded expectations by over €300 million because of the strong demand from private banks, family offices and institutional investors. The UK Times Online reports:

B&G, with offices in Paris and London, has €1.27 billion under management invested in Sark and other funds. The two co-founders own about 80 per cent of the equity. It can borrow up to 100 per cent of net assets to spice up returns. The fund’s partners and staff have put in €28 million of their own money and are locked in for 18 months.

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