Brazil-focused FoHF launches

Date: Tuesday, March 2, 2010
Author: Hedge Funds Review

Geneva-based asset management company Bedrock Group has launched a fund of hedge funds (FoHF) focusing on managers in Brazil.

The Bedrock Brazil Fund was launched with approximately $40 million of assets under management from existing and new investors, said Bedrock managing partner and co-founder Maurice Ephraiti.

The fund will concentrate on six to eight Brazilian managers using long/short equity, credit and macro strategies. Ephraiti said it would invest in strong, experienced managers.

Brazilian management company JGP will manage the fund for Bedrock. JGP runs several of its own hedge funds as well as managing private money.

Ephraiti said the company shared Bedrock's philosophy in terms of allocation and the transparency of underlying funds.

The Brazil FoHF will be marketed to family offices, third-party managers and private banks. It will charge a 1.25% management fee and a 10% performance fee to institutional investors.

Ephraiti said Brazil was a good prospect for investors with less associated risk than other emerging markets. "We believe it's beyond the commodity story. It has huge domestic growth which we believe is going to continue for the next generation," he said.

The fund is domiciled in the Cayman Islands. Citco Fund Services has been selected as administrator while the custodian bank will be Citco Bank Netherlands.

Minimum investment for the institutional share class is $1 million, with a $100,000 minimum investment for retail investors.