Key Asset Management (KAM) is to launch a new "deep value, opportunistic" single manager fund focusing on US and developed markets.
Key Value, Inc, which is due to launch on 1 March 2005, is the result of a strategic relationship created between KAM and Flagg Street Capital LLC who will manage the new fund. Flagg Street launched Flagg Street Street Offshore LP on 2 June 2004 and in the first six months the fund has generated 6.5 per cent.
Flagg Street's robust investment philosophy and strong industry connections have been rewarded by seeding from top tier firms. KAM and a leading US-based event driven hedge fund have between them committed approximately USD 40million.
According to Flagg Street's portfolio manager Jonathan Starr, the firm's investment philosophy focuses on value. "In the pursuit of value, Flagg Street will opportunistically invest in debt and equity securities across all sizes of companies," he says. "Flagg Street employs thorough, bottom-up fundamental analysis focusing on cash flows that provide the investment with a strong IRR. Because investment is primarily in securities with structured cash flow or with significant cash flow available to that security, the portfolio should produce value independent of market movements."
KAM's chief executive, Peter Dencik, said: "The launch of Key Value, Inc. demonstrates KAM's ability to structure innovative fund solutions to satisfy its investors' demands. KAM is delighted to have established a joint venture with Flagg Street and is extremely pleased with the level enquiries we are receiving about the fund."
Background notes: KAM was founded in 1989 as an independent hedge fund company and for more than 15 years has been dedicated to developing strong partnerships with its clients across the globe, with the fundamental objective of achieving high risk-adjusted returns and preservation of capital, a goal which has been consistently achieved across a variety of market cycles. KAM, with offices in London, Oslo, Geneva, Stockholm, and New York, currently has in excess of USD 1.1billion in assets under management and advice.