EARTH CP LAUNCHES FORESTRY FUND
Earth Capital Partners last week announced the launch of its newest fund, ECP Forestry Fund One LP. A vehicle for institutional investors to engage in forestry projects in Latin America, the fund will have a 10-year maturity and intends to invest in six to eight projects to generate non-correlated returns. The fund is targeting up to $300m of investment with a management fee of 1.5 per cent and a performance fee of 20 per cent. The minimum investment in the fund is $10m and the managers are targeting a net internal rate of return of 12 per cent.
HEDGE FUNDS CLOCK UP GAINS
Early estimates suggest that the Credit Suisse/Tremont Hedge Fund Index will post positive performance of 1.49 per cent in April. Eight out of 10 sectors saw an improvement in performance: Event-Driven strategies led the pack, returning an estimated 2.28 per cent as managers benefited from idiosyncratic events and general upward movements in high yield and leveraged loan markets. Relative Value strategies also did well as many managers benefited from a surge in volatility at the end of April. Dedicated Short Bias funds were punished severely, finishing down 3.41 per cent.
FUNDs OF FUNDS DOING WELL
The Investment Management Association (IMA) have released their quarterly fund statistics for the fund of funds industry. And the IMA found that funds under management for funds of funds increased to their highest ever level in the first quarter of this year. Funds under management increased by more than £140bn in the first quarter, an increase of £17.6bn compared with the first quarter of 2009. The Balanced Asset Class accounts for the highest proportion of the new funds, totalling 62 per cent, whereas the Cautious Managed sector saw net outflows.