Zurich-based Palomar Capital Advisors Ltd. has announced the first closing of a fund of funds dedicated to the structured credit area.
Palomar Structured Credit Strategies Ltd. invests in a portfolio of hedge funds employing a variety of directional and hedged strategies in the asset-backed securities markets, including collateralised debt obligations and mortgage-backed securities.
"We are delighted to have raised in excess of USD 40m at a first closing" says Markus Kroll of Palomar, "in particular given the current environment in the structured credit market, but our seed investor understands that where there is volatility, there are opportunities." The fund was launched after 12 months of intensive preparation.
"A diversified portfolio of funds, managed by the leading practitioners in the market, is the lowest risk approach to benefiting from the best opportunities in the large and complex structured credit market," says George Tintor of Palomar.
The Cayman-based fund is open-ended and will be marketed to an institutional investor base starting in June 2005. Investments are offered in i) capital protected format, ii) leveraged shares, with two times leverage and iii) as direct investments, each in USD, EUR and CHF.