London-listed fund of hedge funds Tapestry Investment has successfully placed shares raising GBP52.1m from a range of existing and new investors.
London-listed fund of hedge funds Tapestry Investment has successfully placed shares raising GBP52.1m from a range of existing and new investors. At the same time, the fund’s performance fee will be amended to 10 per cent of returns earned over a hurdle of three-month sterling Libor with effect from January 1 next year.
Ramius HVB, the investment manager, says it expects around 90 per cent of the net proceeds of the share issue to be invested or committed by October 1 in accordance with the fund’s investment policy.
‘We are pleased with the results of the issue, which has transformed the company by nearly doubling its market capitalisation,’ says Tapestry chairman Mel Carvill. ‘It is also important to note that the leading existing shareholders in Tapestry allocated additional capital and a number of new, high-profile institutional investors were attracted to the offering.
‘We believe this is reflective of the key investment characteristics of the firm, namely its targeted low volatility and low correlation to traditional asset classes.
‘We also believe that the new performance fee structure, which will come into effect on January 1 alongside the basic management fee of 1 per cent, which includes secretarial and administrative costs, will result in Tapestry offering one of the most competitive and investor-friendly fee structures among London-listed funds of hedge funds.’
Thomas Strauss, chief executive and chief investment officer of Ramius HVB, says: ‘This issue further underscores Ramius HVB’s belief that periods of market dislocation are ideal times to invest.
‘The portfolio allocations in Tapestry allowed for strong performance relative to markets, and its London-listed peer group, during the recent months of severe market dislocation, amid a global deleveraging and credit market upheaval. We look forward to further executing on our strategy for existing and new investors.’
Applications have been made to the UK listing authority for 52.1 million C shares to be admitted to the official list and to the London Stock Exchange for the same number of C shares to be admitted to trading on the exchange’s listed securities market.
Tapestry is a multi-strategy, multi-manager fund of hedge funds designed to be a diversification tool from other London-listed fund of hedge funds offerings. Through a distinctive asset allocation, targeting low volatility and non-directional strategies, coupled with a competitive fee structure and a rigorous discount/premium control mechanism, the fund’s investment objective is to achieve target returns of 4 to 5 per cent above three-month sterling Libor over a complete market cycle typically of five years.
Ramius HVB is a joint venture between Ramius Capital Group and Bayerische Hypo-und Vereinsbank, a subsidiary of Italy’s Unicredito. It offers a range of institutional fund-of-hedge funds to a global client base, about 63 per cent of which consists of European institutions.
