Paris-based NewAlpha Advisers is to seed MT Thaler Investment Management and accelerate its development as an independent hedge fund manager.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
This agreement will be the fourth of its kind signed by ADI's seeding subsidiary since its creation in November 2003. NewAlpha will commit investor seed funding from its partners Matmut and MAAF, two of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />France's largest insurance companies. This investment brings net assets of the MT Thaler New Europe Fund to approximately USD 20 million on 1 August 2005.
"This partnership will enhance our visibility with investors across Europe and particularly in France where NewAlpha has a significant marketing presence through its parent ADI. NewAlpha's proven ability to develop hedge fund products makes them an outstanding partner on this and many other issues," said MT Thaler's CEO Michael Sonenshine (see previous Hedgeweek Interview with Michael Sonenshire).
"We have decided to enter a long-term partnership with MT Thaler because of their long experience in a region we regard as one of the most promising in the world, from an investment point of view. We were also interested in their unusual and differentiating approach — investing across asset classes — which has been confirmed by their very good track record so far. We therefore anticipate significant demand for this fund from institutional investors who are looking for innovative investment propositions, low correlations and good alpha-generations," said NewAlpha Advisers' CEO, Nicolas Gomart.
MT Thaler is a fund manager focused on the region of Emerging Europe. The fund management team is exploiting the opportunities across asset classes which arise in New Europe-- the region which includes all of the 10 new members of the European Union as well as neighboring countries like, Russia, Turkey, Romania, Ukraine and Bulgaria. The team of three principals has 35 years of combined experience in the region working as analysts or traders at top-name investment banks before starting MT Thaler in the 3rd quarter of 2003. MT Thaler Investment Management LLP is authorised and regulated in the UK by the Financial Services Authority.
The New Europe Fund has 19 months track record and is focused on identifying mispriced securities and arbitrage opportunities in publicly traded securities in the region. This fund is multi-asset classed, relatively low volatility, and has no fixed weighting between credit, equities, or interest rates. The fund, for the most part, is not directional.
In the last 12 months, the New Europe Fund is up 22.5%. The fund is up 10.8% in the first half of 2005. The fund exhibits low correlation of returns to either global macro strategies or emerging market strategies. Volatility over the last 52 weeks is 10.15% annualized, the Sharpe and Sortino ratios are 1.84, and 3.52 respectively.
NewAlpha Advisers is the 100%-owned seeding subsidiary of ADI, the largest independent alternative asset manager in Paris with assets under management of Eur 4.3bn.
Through a common subsidiary with MAAF and Matmut, New Alpha Advisers has built a seeding platform which has so far invested in Roche-Brune (Paris-based long-only absolute return equity manager), Langlade Capital Management and LH Ward & Co (London-based long-short equity managers), and MT Thaler Investment Management.