Key Takeaways
- • Thames River Capital is raising £50–100 million for its Thames River Hedge+ fund of hedge funds through a placing and offer for subscription, driven by strong investor demand following market dislocations from the credit crisis.
- • The £159.4 million Hedge+ fund, launched in February 2004 and listed on CISX and LSE, has delivered annualized returns of 11.5 percent since inception and posted a 29.6 percent sterling share price gain between October 2006 and September 2007.
- • Manager Ken Kinsey-Quick identified distressed debt opportunities over the next 12–24 months as a key driver of near-term fund positioning, citing the repricing of risk following the credit bubble burst.
- • Between October 1, 2006 and September 28, 2007, the fund's euro and dollar share classes appreciated 33.7 percent and 25 percent respectively, trading at premiums of 3.3–4.1 percent to net asset value as of the fundraising announcement.
- • Thames River Capital is executing a team expansion phase, with multiple hires added to strengthen its fund of hedge funds capability during a period of elevated market opportunity.
Summary
Thames River Capital, a London-based hedge fund manager established in 1998, has announced a fundraising campaign targeting £50 million with an upper limit of £100 million for its flagship Thames River Hedge+ fund of hedge funds. The capital raise, structured as a placing and offer for subscription, responds to pent-up institutional investor demand following dislocations in credit markets triggered by the bursting of the credit bubble.
The Thames River Hedge+ fund, a closed-ended Guernsey-domiciled protected cell company with £159.4 million in assets under management, has been listed on both CISX and LSE since its February 2004 launch. The fund targets absolute returns exceeding 10 percent per annum across a full market cycle through opportunistic exposure to a diversified portfolio of both directional and non-directional hedge fund strategies. Since inception, the fund has delivered annualized returns of 11.5 percent, positioning it as a top performer within the fund of hedge funds sector during a period of market stress.
Performance metrics highlight the fund's resilience during recent market turbulence. Between October 1, 2006 and September 28, 2007, sterling shares appreciated 29.6 percent (from 116.5 pence to 151 pence), euro shares gained 33.7 percent (EUR1.04 to EUR1.39), and US dollar shares rose 25 percent (USD1.00 to USD1.25 since their November 2006 launch). As of the announcement date, the fund's share classes traded at premiums of 3.3–4.1 percent to their respective net asset values, indicating strong demand premium pricing.
Ken Kinsey-Quick, manager of the fund, characterized the current environment as presenting "exciting investment opportunities, especially in the distressed area, over the next 12 to 24 months" as risk repricing creates tactical entry points. Charlie Porter, Thames River's chief executive, reinforced the firm's operational strength, noting that "while many hedge funds suffered during August's market turbulence, Ken and his team have continued to deliver outstanding performance for shareholders," with attraction extending across both domestic and European institutional investor bases.
The Thames River Hedge+ fund, a closed-ended Guernsey-domiciled protected cell company with £159.4 million in assets under management, has been listed on both CISX and LSE since its February 2004 launch. The fund targets absolute returns exceeding 10 percent per annum across a full market cycle through opportunistic exposure to a diversified portfolio of both directional and non-directional hedge fund strategies. Since inception, the fund has delivered annualized returns of 11.5 percent, positioning it as a top performer within the fund of hedge funds sector during a period of market stress.
Performance metrics highlight the fund's resilience during recent market turbulence. Between October 1, 2006 and September 28, 2007, sterling shares appreciated 29.6 percent (from 116.5 pence to 151 pence), euro shares gained 33.7 percent (EUR1.04 to EUR1.39), and US dollar shares rose 25 percent (USD1.00 to USD1.25 since their November 2006 launch). As of the announcement date, the fund's share classes traded at premiums of 3.3–4.1 percent to their respective net asset values, indicating strong demand premium pricing.
Ken Kinsey-Quick, manager of the fund, characterized the current environment as presenting "exciting investment opportunities, especially in the distressed area, over the next 12 to 24 months" as risk repricing creates tactical entry points. Charlie Porter, Thames River's chief executive, reinforced the firm's operational strength, noting that "while many hedge funds suffered during August's market turbulence, Ken and his team have continued to deliver outstanding performance for shareholders," with attraction extending across both domestic and European institutional investor bases.
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