This content is from: Portfolio

The Morning Brief: 36 South to Debut New Tail Risk Fund

A hedge fund firm that has benefitted in the past from market turmoil is launching a new hedge fund designed to help protect Australian institutions from declining markets. 36 South Capital Advisors, whose Black Swan Fund surged 204 percent in 2008, is starting Kohinoor Pacific Fund on April 1, according to Bloomberg. It points out that the fund is being launched at a time when it is cheap to buy protection against increases in volatility. “It is entirely conceivable that both bond prices and equity prices will move down together in the next serious downturn,” 36 South Chief Investment Officer Jerry Haworth said in the statement, according to Bloomberg. “Portfolio losses in this scenario will be exacerbated and the need for diversifiers will be greater than before.”

Hedge fund redemptions appeared to have risen last month. SS&C GlobeOp said its redemption indicator for March measured 3.81 percent, up from 3.38 percent in February. Even so, the hedge fund administrator stresses that forward redemption requests remain slightly lower than this time last year. SS&C GlobeOp’s data on the GlobeOp platform represents about 10 percent of the hedge fund industry. The firm says its redemption indicator has trended significantly lower since reaching a high of 19.27 percent in November 2008.

New York-based Glenhill Capital disclosed that it raised about $85 million in two long-only hedge funds in the past year or so — Glenhill Long Fund Ltd. and Glenhill Long Fund L.P. — according to regulatory filings on Friday.

Boston-based Adage Capital Partners disclosed a 5.56 percent passive position in Ovascience, a $180 million market cap life sciences company that develops and markets treatments for infertility.

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