Bryan Garnier Asset Management, the institutional asset management arm of Bryan Garnier & Co, has launched a hedge fund managed by Adriaan Klop.
The European Growth Long/Short Fund tracks European companies in growth sectors. Aimed at both pension funds and institutional investors, the Fund aims to achieve an annualised return of 15 to 20%.
The Fund, developed and managed by Adriaan Klop, Chief Investment Officer at Bryan Garnier, will include up to 40 stocks from four distinct sectors, identified as having the strongest growth potential by Bryan Garnier: Technology-Media-Telecommunications, Life Sciences, Brands & Specialty Retailing and Outsourcing.
Klop joined Bryan Garnier Asset Management Ltd in early 2006 as Managing Director and Chief Investment Officer.
Prior to joining BGAM Ltd, he was a consultant for European institutions, specialized on strategic and tactical allocation, as well as alternative investment manager selection, from 2003 to the end of 2005. He developed and launched leveraged structured hedge fund-linked investment products designed for French institutional investors.
From 2001 to 2003, Klop was Manager - Alternative Investments at ABP, the world's second largest pension fund, based in Amsterdam. He established ABP's Enhanced Return Fund and managed a hedge fund portfolio of over EUR 1bn.
Klop said: 'The backbone of our investment strategy is to apply a quantitative alpha extraction and risk management process to the fundamental stock-picking expertise of Bryan Garnier's highly regarded in-house independent equity research. Our proprietary risk management and control process, which systematically executes trading signals, scrutinises every position for volatility, exposure and profitability against set annualized targets, such as 12 - 15 per cent for volatility.'
He added: 'Our investment approach is risk focused but research and ideas driven. We want our investors to grow their wealth without taking undue risk. The Fund should realise a return in excess of 15 %, after fees, over a 2 to 3 year period.'
For its initial test phase, the highly quantitative Fund is launched with EUR 1 million already under commitment. Klop estimates an overall capacity at EUR 400 m as Bryan Garnier is already under discussion with several European institutions for significant commitments and capacity deals. The company is confident that investors will find the Fund an attractive proposition.
The Fund is the first of a series of hedge funds to be launched by Bryan Garnier in the next 18 months. The firm intends to design and manage additional European equity-based investment vehicles in the future.
- Minimum investment of EUR 250 K
- Cayman Islands domiciled and listed on the Irish Stock Exchange
- Target return is LIBOR + 15 %
- Downside volatility range is between 7 % and 10 %.
- Low correlation with Equity markets and L/S Hedge Fund indices
- Annual management fee of 2.0 %, including administration fees
- Incentive fee of 20% of performance.
Background note: Bryan Garnier Asset Management Ltd is the institutional asset management arm of Bryan Garnier & Co, the independent European investment banking group founded in 1996.
From the very beginning, Bryan Garnier has focused exclusively on fast-growing European companies and growth-oriented investors. The firm focuses on four industry sectors (Technology-Media-Telecommunications, Life Sciences, Brands & Specialty Retailing and Outsourcing), which represent over 45% of the total European market capitalization. By specializing in European growth companies, Bryan Garnier positions itself to spot new entrants and uncover new industry segments.
From offices in London, Paris and Geneva, this independent partnership of experienced finance professionals deploys its expertise in Research, Brokerage, Asset Management and Corporate Finance, its four business lines