In this week’s hedge fund spotlight, we look at emerging hedge fund managers Baobab Asset Management and Helix Partners Ltd. Greenwich, Connecticut-based Baobab launched its first fund in March of this year, while Sydney-based Helix Partners was launched last month.
Baobab Asset Management is a natural resources hedge fund manager that was founded in 2009 by Chief Investment Officer Russell Fryer. The firm’s maiden hedge fund, the long/short Baobab Natural Resources Fund, was launched in March of this year. The fund is having a strong year so far and through the end of August was up 27.13% since inception.
Baobab invests mainly in metals, oil, and agriculture sectors through a variety of exchange-traded products, derivatives, and equities. The fund’s seeks to maximize returns while maintaining liquidity and minimizing volatility.
In its research efforts, Baobab employs fundamental analysis, on-site visits and management meetings, as well as pipeline and supplier checks to determine facts and confirm thesis. The firm also leverages its founder’s experience and industry knowledge to identify market opportunities. Over the course of his 19-year investment career, Mr. Fryer has travelled extensively seeking to obtain on-the-ground perspectives in the natural resources sector. From 1987 to 2004, he was principally based in Africa where he developed relationships at both senior and working levels throughout the industry.
Prior to founding Baobab Asset Management, Mr. Fryer served as managing director of natural resources at Greenwich-based North Sound Capital. Prior to that, Mr. Fryer was a director in Emerging Market equities at Deutsche Bank.
Next in this emerging hedge fund manager report is Helix Partners Ltd, which was launched by Macquarie Group veterans Brandt Leahy, Justin Webb, and Matt Perone. As announced last month, the new firm has been created in partnership with investment boutique investor Ascalon Capital Managers. Helix Partners’ maiden fund, the Helix Quant Hedge Fund, will use quantitative computer models to invest in global equities. In a statement, Justin Webb added that the firm’s proprietary models have been in development for many years.
While at Macquarie Group, the three founders worked alongside each other in the firm’s quantitative strategies group. They have been managing money as a team for the last 4 years and first met 10 years ago as undergrads at Harvard University. Before joining Macquarie, Perone was a quantitative analyst in the portfolio finance division at Citadel Investment Group, Webb was a credit analyst and trader in the High Grade Credit Division of Lehman Brothers, and Leahy was a credit analyst specializing in high grade and high yield sectors at Delaware Investments.
Ascalon Capital Managers’ portfolio of boutique investment managers also includes H3 Global Advisors, Alleron Investment Management, ATI Asset Management, and Continuum Capital Management. Last month, Ascalon became a subsidiary of Australia-based Westpac Banking Corporation. |
