Henderson Global Investors, the independent asset manager with over USD 116 billion assets under management, launched the Henderson Special Situations hedge fund on 1 September 2006.
The fund, managed by Adam Tyrrell and Will Ballard, invests in situations where it is perceived value can be realised through corporate restructuring for example, in takeover and merger situations.
The fund invests on a global basis and predominantly follows the 'Event-Driven' strategy of the multi-strategy equities team at Henderson, one of four strategies used by the team. The 22-strong multi-strategy team has been using this strategy within its hedge funds for over five years and has built up a strong performance record and depth of expertise. With a track record of running this strategy, a dedicated special situations fund would have delivered an annualised return of 13.88% net of fees since 2004, with a Sharpe Ratio of 2.29.
As well as looking at M&A activities, the Special Situations Fund focuses on other corporate structure arbitrage opportunities such as holding companies and share class trades.
The Dublin-listed fund has a minimum investment of USD100,000 (or Euro equivalent) and is being marketed to family offices, institutional investors, funds of funds and pension funds.
'The Henderson Special Situations Fund benefits from having a track record which demonstrates the strength of the team's rigorous investment process and depth of expertise,' says Kate O'Neill, Director of Hedge Funds at Henderson. 'In particular, Adam has over 15 years experience in derivatives and special situations and is already contributing to the performance of Henderson's existing multi-strategy hedge funds. Before coming to Henderson he was a special situations trader on a prop desk at Credit Suisse.
'This is the latest launch for the hedge fund business at Henderson and coincides with the launch of the Henderson Total Return Fund, a fund of Henderson hedge funds. We have had a highly successful 2006 so far, increasing funds under management from US$1.8bn to over US$3bn, and these launches continue the expansion of the business.'
In the last 12 months, Henderson has launched three new hedge funds: the European Style Rotational Long Short Fund; the Global Currency Absolute Return Fund; and the Global Equity Multi-Strategy Fund, in addition to the new Special Situations and Total Return Funds, and now manages 14 single and multi-strategy hedge funds.