Platinum has announced a major expansion to the Platinum Premier Fund's investment portfolio to coincide with its re- opening to investment from 1 June.
The fixed- income Platinum Premier Fund was soft-closed on 31 March 2005. The expansion brings four top- line fixed income hedge fund managers to join Premier's initial manager, City Fund Management. The additional managers are: Endeavour Capital; Rimrock Capital Management; Old Hill Partners and Drawbridge (part of Fortress Investment Group). These managers manage in excess of USD 5 bn aggregate and are ranked among the global leaders in their chosen approaches to trading the fixed income sector.
Peter Sprecher, Chairman of the Platinum Group, said: "We are in a period when fixed- income strategies appear to offer more consistent returns and more robust risk management than most hedge funds. From the strong base we achieved with the initial launch of Platinum Premier, we have expanded capacity by creating an evolved fixed- income portfolio capable of producing robust risk- adjusted returns."
He added: "This increased capacity, enabled by the addition of four extraordinary fixed income managers, will allow us to meet the demand from our enthusiastic investors."
New investment in Platinum Premier will be allocated among the four management groups.
Focusing on fixed- income relative value trading, the Endeavour Fund has gained over 47% (to end- March) since inception in June 2000 -- with a standard deviation of 5.05% and 87% positive months. The strategies, developed by the founders, Paul Matthews (CEO and CIO) - former head of Global Fixed Income Arbitrage at Salomon Smith Barney (SSB); Paolo Kind - former MD and Head of Research and Risk Management for Global Fixed Income Arbitrage at SSB; and Ulf Wissen - Former MD from SSB's European Fixed Income Arbitrage department, have proven a source of reliable returns.
Rimrock Capital Management
Rimrock High Income Plus Fund has produced a compound annual return of 10.73% for the five years to end- March 2005 only eight losing months. The Fund's strategy is designed to exploit st ructural and technical inefficiencies in the market especially in the short- end of the yield curve and to enhance returns through hedging. Rimrock is run by David Edingtion - formerly MD at Pacific Investment Management where he managed in excess of USD 30 billion of assets invested in both equities and fixed income.
Old Hill Partners
Old Hill manages over USD 700m in fixed income credit strategies. Since January 2001, the OHP Opportunity Fund has achieved a compound annual growth of 16.86% (to end- March 2005) with only three losing months. Old Hill capitalizes on a niche in the fixed income market created by the proliferation of non- traditional fixed income products tailored to sophisticated institutional buyers. John C. Howe is the majority shareholder and founder. Formerly, Howe was MD at Nomura in New York, where he oversaw the USD 40 billion Government Business Unit.
The Drawbridge RV Plus Fund invests predominantly in G7 government bond, swap and futures markets and in currencies, equity indices and commodities. The Fund seeks to maximize portfolio returns through the application of diversification and optimization algorithms. This (currently) USD 400m fund is part of the Fortress Investment Group, a global alternative investment firm with USD 12 billion under management. Thomas J.Paul, CIO of Drawbridge, was formerly MD in the Global Markets Group at Deutsche Bank - most recently as head of Global Rates Risk (GRR), an internal fund. In addition, he oversaw the Deutsche Bank's exposure to global interest rates as chairman of the interest rate risk committee and was previously head of fixed income trading in North America.
Background Note: Platinum is an international group headquartered in London, with affiliated offices in Zurich, New York, Stockholm, Tokyo, Caracas, Hong Kong, Dubai, Singapore, Isle of Man and Luxembourg. Platinum Capital Management Ltd is authorised and regulated in the UK by the Financial Services Authority (FSA).
Platinum Capital Management markets and distributes structured products, funds of hedge funds, and single strategy hedge funds globally. Platinum Wealth Management offers insurance investment products and wealth management services. Platinum Trading Management coordinates and implements all asset allocation and investment management decisions between the Platinum family of funds worldwide. Platinum funds are components of the Morgan Stanley Capital International (MSCI) Hedge Fund Index.