Specialist credit asset management firm Cairn Financial Products has launched the Cairn Capital Structured Credit Fund, which is aimed at institutional investors and managed by Andrew Jack
Specialist credit asset management firm Cairn Financial Products has launched the Cairn Capital Structured Credit Fund, which is aimed at institutional investors and managed by Andrew Jackson, the firm’s head of quantitative research.
Launched to investors in December 2007, the Cairn Capital Structured Credit Fund has delivered three months of positive returns totalling more than 5 per cent net of fees. It seeks to capitalise on dislocations across a range of structured credit asset classes through opportunities in credit derivatives, options and asset-backed securities.
The fund aims to deliver annual returns exceeding 15 per cent net of fees, with no performance fees payable until performance reaches a Libor-plus hurdle. It has a target annual volatility of around 5 per cent, and investors – Cairn is targeting pension funds, insurance companies, banks and fund managers – will be expected to invest a minimum of USD1.5m.
‘We believe that the recent repricing and deleveraging of credit has created unprecedented opportunities within the market,’ Jackson says. ‘This is the ideal time to take advantage of those opportunities.
‘Our disciplined approach to portfolio construction, which blends liquid trades with longer term high-conviction trades, is capable of delivering compelling returns throughout the upcoming volatility. Disciplined trading and a high degree of technical insight have allowed us to deliver stable realised returns in these volatile markets without entering the traditional long correlation trades favoured by other structured credit funds.’
LaSalle Global Fund Services Europe in Dublin has been appointed as the administrator to the fund. ‘Our strong technical understanding of the current state of the credit market sets us apart from our peers, and in LaSalle Global Fund Services Europe we have found an administrator that shares our understanding,’ Jackson adds. ‘They have impressed us with their enthusiastic, energetic and highly professional approach and their continued hard work in growing the fund.’
Cairn is an independent asset manager offering services in specialist asset management, structuring and advisory, real estate and fund management. Since obtaining regulatory approval in August 2004, the firm has accrued assets under management of some USD9.6bn.
