The management team at London-based Sabre Fund Management Limited has purchased the majority equity stake owned by Colin Barrow.
The deal, which is subject to FSA approval, will see Barrow step down as Chairman of Sabre, a leading market neutral hedge fund manager. Robin Edwards will remain a shareholder and will commit one day a week to the firm.
On completion, the new capital structure will enable the partners to tie-in and reward key employees, and facilitate the attraction of new fund management talent.
Commenting on the new shareholding structure, Melissa Hill, Managing Principal, said: "Hedge fund investors look for their manager's interests to be aligned with their own. By substantially increasing our personal investment in the business, we are demonstrating our commitment for the long term and belief in what we do".
Dan Jelicic, Principal and architect of the Sabre Style Arbitrage Fund said: "We have some exciting plans for 2006. Our core methodology has performed strongly this year and the Style Arbitrage Fund's three-year track record (8.8% net annualised with low volatility and uncorrelated to equity markets) provides evidence of the robustness of our market neutral trading style. We are confident that our new product plans will enable us to provide our clients with a choice of risk/return profiles to match their individual needs."
Sabre is increasing its commitment to the research and development of new fund management products. Throughout 2005, R&D was directed at strengthening the forecasting models and introducing US trading. In 2006, one of the first projects is to further diversify the Style Arbitrage Fund by including Japanese stocks.
Background Notes: Sabre Fund Management Limited is a leading European quantitative hedge fund based in St. James's London. It manages the Style Arbitrage Fund launched in August of 2003. The track record since inception (August 2002 to 30 November 2005) is 8.8 per cent annualised at a Sharpe Ratio of 1.2. Year-to-date performance for 2005 is 10.6 per cent.
Sabre's clients comprise funds of funds, hedge fund platforms, private banks, high net worth individuals and endowments.
Sabre Fund Management Limited is regulated by the FSA.
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