MANAMA: Investcorp, the asset management firm specializing in alternative investments, announced Tuesday that it had been appointed to manage two US hedge fund mandates worth a combined $310 million. These managed account mandates from US institutional investors are part of the more than $1 billion in new mandates that Investcorp’s hedge funds business have received this year from institutional investors in the United States.
“The two US institutions who awarded us these new mandates are existing clients, who have been investing in Investcorp’s hedge funds programs since 2007, before the financial crisis,” said Mohammed Al-Shroogi, Investcorp’s president of Gulf business. “It is significant, and a pleasing endorsement, that they are, at this time, further increasing their allocations, and by significant amounts, to our hedge funds,” he added.
“This reflects a growing trend among US institutional investors, who are currently increasing their portfolio allocations to alternative investment classes, in particular to hedge funds. We are anticipating a similar trend here in the Gulf region, with positive indications of interest in our meetings with Gulf-based institutional and ultra high net worth investors to increasing their weighting to hedge funds, as they look to reposition portfolios for stronger returns.”
“Our 13 year track record, as well as strong returns of 12.3 percent in the first six months of 2009 coupled with innovative risk management, is positioning us well with Gulf investors, as investor confidence is returning,” said Khalid Al-Rumaihi, Investcorp’s head of institutional investments in the Gulf.
The first US mandate is a $250 million investment from one of the largest listed insurers in the United States, which has an investment portfolio exceeding $100 billion; the second is a $60 million mandate from one of the largest US public pension plans, which has over $90 billion in assets under management. Investcorp is investing these new mandates using a global macro investment strategy, a style of investing that finds opportunity in variations in interest rates, foreign exchange rates and other macro economic differences.
Investcorp’s hedge fund business currently manages, on behalf of Investcorp’s private and institutional clients, a range of funds of hedge funds and structured fund products. The underlying hedge fund managers invest in a variety of liquid financial instruments, including equities, bonds, and derivatives. In addition, through its single manager program, Investcorp provides investors access to talented hedge fund managers who have started their own funds.
