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April 18, 2006
Nobel to invest in hedge funds for first time
The organisation that funds the Nobel Prizes has decided to invest in hedge funds for the first time, tapping three firms for its maiden investments.
The Nobel Foundation, which has more than $450m in managed capital, has invested in Corbin Capital Partners, Rock Creek Potomac fund and the Carnegie Worldwide Long/Short fund. Although the size of the investments was not disclosed, industry officials said winning an investment mandate of any size from Nobel would be seen a seal of approval for the three funds.
"It is an honour to have been selected by the Nobel Foundation – Nobel is the perfect example of the type of client fuelling our growth," said Tracy McHale Stuart, Corbin's chief executive officer.
Corbin is best known by its former name: Dubin & Swieca Capital Management. The $1.7bn New York fund of funds was started by Highbridge Capital's Glenn Dubin and Henry Swieca in 1984.
While it has more than two decades of successful investing, with good access to the best managers, thanks to Messrs Dubin and Swieca, the founders only turned their attention to building Corbin into a major fund of funds player in the past few years, recruiting Ms McHale Stuart and others to expand the business.
Rock Creek, meanwhile, began life as the hedge fund business of Carlyle Group. But Afsaneh Beschloss, the former World Bank official who started Rock Creek, bought out Carlyle in 2003. The fund of funds firm now has nearly $3bn in assets, mostly institutions, and performance has been in the top decile at its funds.
Carnegie Worldwide Long-Short fund, run by Bo Knudsen and Bengt Seger, has returned 66.7 per cent since its June 2003 inception with little volatility.
For Nobel, the foray into hedge funds offers the foundation greater diversification and more flexibility when it comes to investment styles.
Ake Alteus, the deputy executive director of the Nobel Foundation who led the process, said: "Before March of last year we could not invest in alternatives due to investment rules requiring a high degree of liquidity" in its investments.
Nobel can now put as much as 10 per cent of its strategic portfolio in alternatives, which includes real estate.
-FT.com-
Posted by su at April 18, 2006 10:18 AM