Paris-based ADI-Alternative Investments has launched the Kallista Arbitrage Strategies fund.
This is the first multi-arbitrage vehicle within ADI's Kallista hedge funds range.
Kallista Arbitrage Strategies Fund invests in a dynamically-managed and leveraged blend of the existing Kallista funds, and in select individual strategies aimed at capturing opportunities within ADI's investment universe.
The four existing Kallista funds that ADI manages invest in Convertible Arbitrage, High Yield Arbitrage, Volatility Arbitrage and Long/Short strategies. ADI is also involved in Merger Arbitrage via a French mutual fund, which does not yet have any equivalent in the Kallista range of hedge funds.
Bear Stearns acts as Prime Broker for the new fund that has a quarterly +90 day liquidity notice period. Management fees will be 2 per cent and performance fees 25 per cent with High Water Marks.
ADI says no other fees will be charged from the other Kallista funds, as the Fund will be using an innovative structure to benefit from substantial operational and transaction cost savings.
ADI added that the Fund, which was launched with Euros 45 million in capital, has already closed to new investors as further orders will absorb the limited capacity of Euros 100 million within the next month.
Background Note: ADI - Alternative Investments manages ten French-regulated public funds and five hedge funds, investing via various alternative investment techniques and has a total Euros 3.65 billion under management, including Euros 750 million in hedge funds.