Jean-Hugues de Lamaze and Sebastien Letellier who previously worked together at Goldman Sachs, the former as Head of European utilities research, the latter in charge of trading/proprietary trading on the investment bank's utilities book, have launched a new fund, using PCE Investors' hedge fund infrastructure.
De Lamaze said: 'The Utilities and Visibility Fund (UV Fund) is aiming to capitalize on several long-running trends. One is the growing use of outsourcing by local authorities and governments to upgrade utilities services such as water and waste management. Another is the liberalization process in Europe that is just now seeing cross-border consolidation among power and gas utilities. A third is the need for new power generation and transmission capacity in the United States and Europe.'
Letellier added, 'Our Investment universe is both scalable and very diverse, which offers plenty of long and short stock picking opportunities'.
The Utilities & Visibility Fund will invest in companies with long-term business models and high levels of visibility on future cash flows. Such companies typically have limited exposure to short-term economic cycles. The universe includes companies which may benefit from the growing environmental and sustainable development concerns and investments worldwide. The Fund's investment universe comprises around 750 companies worldwide with total market capitalization approaching USD 2 trillion.
The investment approach is a Long/Short strategy targeting long-term absolute capital growth of +15% annualized net returns with volatility of 6-7%, low correlation to stock markets and a strong dividend yield representing downside risk protection.
The Fund is Cayman-domiciled and Dublin-listed with a minimum investment of USD 250,000. There is a 2% annual management fee and a 20% performance fee with high water mark. Redemptions are monthly with no entry or exit fee. Goldman Sachs International is the prime broker and PFPC International is the administrator.