Cairn Capital takes over Credaris credit fund

Date: Tuesday, April 20, 2010
Author: Reuters

Fund firm Cairn Capital has taken over management of smaller rival Credaris's credit fund as smaller hedge funds look for ways to beef up assets and attract wary investors in the wake of the credit crisis. Cairn, which runs or advises on $34.8 billion in assets, has taken on the 17 million euro ($23.77 million) Credaris Credit long-short fund, which bets on rising and falling prices in European corporate credit, it said in a statement. The move will allow the fund, which returned 24 percent last year and 56 percent in 2008, to "access Cairn's broader platform (and) extensive customer reach".

Many smaller hedge funds have found it difficult to attract investors, who have often preferred the perceived safety of bigger funds after scandals such as the Madoff fraud and losses suffered during the credit crisis, and a number have done deals with bigger firms.

Last year GLG Partners (GLG.N), one of Europe's biggest hedge fund firms, hired the founders of Pendragon Capital and moved across assets.

Cairn said it has also taken on the fund's management team, including manager Sam Cowan, Graham Neilson, who will become Cairn's chief investment strategist, and analysts Beth Fusco and Helen Rodriguez. Credaris runs more than $1 billion in assets.