Shore Capital, the listed independent investment banking
group based in London and Liverpool, announces today that
it is launching the Puma Theta Fund, a Volatility Arbitrage
Hedge Fund, on 3 October 2005. The fund will be listed on
the Irish Stock Exchange.
Puma Theta has been set up to offer enhanced returns using
statistical arbitrage to exploit pricing and volatility anomalies
in options over major stock indices such as the S & P
500 and NASDAQ 100.
Trading will be executed by Theta Financial Instruments (“Theta”),
founded by three Israeli investment managers, Yossi Shussman,
David Yakim and Zvi Tal, formerly members of the Israeli Air
Force. Their flagship fund for Israeli clients, Theta 1, has,
with a similar strategy, produced 15.8% per annum since inception
in September 2003 with very low volatility.
The investment management team has over 20 years of collective
experience in derivatives markets. The fund will also be backed
by Epsilon Investment House (“Epsilon”), a Tel-Aviv-based
Israeli investment house which manages NIS 3b (around $660m)
of assets in mutual funds and managed accounts. The investment
committee determining and monitoring the trading strategy
will consist of representatives of Shore Capital, Epsilon
and Theta.
Shore Capital will be marketing the fund to selected clients
in the autumn. It is intended to broaden the investor base
in the first half of 2006 with a more widely based capital
introduction programme.
This new venture broadens the scope of Shore Capital’s
alternative asset class funds under the Puma brand and will
complement Puma Absolute Return, its fund of hedge funds.
As well as structuring and marketing the Fund, Shore Capital
will oversee cash management and control of margin accounts.
Howard Shore will contribute to overall investment strategy
and will sit on the investment committee. This model of backing
good managers by providing branding, marketing and infrastructure
can be used for other hedge fund strategies.
Shore Capital’s Executive Chairman, Howard Shore said:
“We are delighted to launch the Puma Theta Fund with
our partners Epsilon and Theta. Theta I has strongly out-performed
the CSFB Tremont and VAN Global Hedge Fund Indices using their
delta-neutral hedging strategy and we look forward to their
building on this success.”
He added: “As well as our own successful funds, we
have an excellent track record of backing entrepreneurs and
innovators in the investment industry. We hope to replicate
the Puma Theta model in other areas of hedge fund strategy.”
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