19 Apr 2010
Credit specialist Cairn Capital has scooped up the five member team of the Credaris Credit Fund led by Sam Cowan, underscoring the consolidation that continues to drive the hedge fund industry. The deal provides a homecoming for Cowan, who left Cairn in 2008, to run the fund.
Though the Credaris Credit Fund returned 56% in 2008 and 24% in 2009, it suffered from being overly dependent on one large investor. When that investor recently redeemed, assets under management fell to €17 million from €165 million. Cairn expects its trading platform, business base and distribution reach will help the credit fund attract new allocations. The fund trades liquid credit instruments such as corporate bonds and index credit default swaps.
Cowan, who previously worked as a senior portfolio manager at Cairn before joining Credaris, is being joined by Graham Neilson, the principal architect of the fund, who will become the company’s chief investment strategist. In addition, Beth Fusco and Helen Rodriguez are joining Cairn’s research team as the fund’s principal analysts, while Lindsey Hobday will move to Cairn’s investor relations team.
Cairn has three main business streams focusing on asset management, institutional mandates and advisory. It manages and advises on nearly $35 billion in assets, including running $950 million in hedge funds and managed accounts.
Credaris was established in 2003 and seeded by HSH Nordbank to manage a complex portfolio of legacy credit assets. Based in London, it has over $1 billion of AUM and offers tailored solutions in the form of funds, structured products and bespoke mandates.
Though the Credaris Credit Fund returned 56% in 2008 and 24% in 2009, it suffered from being overly dependent on one large investor. When that investor recently redeemed, assets under management fell to €17 million from €165 million. Cairn expects its trading platform, business base and distribution reach will help the credit fund attract new allocations. The fund trades liquid credit instruments such as corporate bonds and index credit default swaps.
“This development is a significant step in the growth and maturity of Cairn’s funds business,” said Paul Campbell, CEO of Cairn. “The fund will complement our product offerings in European ABS, hybrid bank capital and UCITS.”
Cowan, who previously worked as a senior portfolio manager at Cairn before joining Credaris, is being joined by Graham Neilson, the principal architect of the fund, who will become the company’s chief investment strategist. In addition, Beth Fusco and Helen Rodriguez are joining Cairn’s research team as the fund’s principal analysts, while Lindsey Hobday will move to Cairn’s investor relations team.
Cairn has three main business streams focusing on asset management, institutional mandates and advisory. It manages and advises on nearly $35 billion in assets, including running $950 million in hedge funds and managed accounts.
“Cairn’s position and expertise in the global credit markets have earned it an enviable reputation in modern credit risk management, which is why we have chosen to novate the existing investment management agreement from Credaris to Cairn,” said Andrew Donaldson, CEO of Credaris. “The recent support from investors for the Credaris Credit Fund has confirmed to us that there is ongoing demand for a liquid long-short credit strategy (and) I am confident that the fund will continue to flourish in this new arrangement.” Donaldson will remain on the fund’s board of directors.
Credaris was established in 2003 and seeded by HSH Nordbank to manage a complex portfolio of legacy credit assets. Based in London, it has over $1 billion of AUM and offers tailored solutions in the form of funds, structured products and bespoke mandates.
