Optima Fund Management has launched the first of its distressed securities funds, The Scott's Cove Fund Limited. The fund, to be managed by Philip Schaeffer and Joseph Colquhoun, will begin trading on May 1, 2001.
The focus of this event-driven fund is US distressed securities and investments are made with no leverage and on the basis of fundamental proprietary analysis. Investment targets include securities issued by companies, which are highly leveraged and/or misunderstood, out-of-favour, bankrupt, undergoing reorganisation and/or recently recapitalised. These include public and private bonds, bank debt, trade debt, preferred stock and common stock.
Key investment parameters include risk reduction achieved by analysis of risk/reward ratios of individual securities, a continuous assessment of the portfolio and a particular emphasis on evaluating the management of companies.
In a time of dangerous uncertainty in equities, investors must look for a secure and durable alternative, said Dixon Boardman, managing director, Optima Fund Management.
The Scott’s Cove management team is led by Philip Schaeffer a 15 year veteran of the distressed securities industry. From 1990 to 1999, Schaeffer was senior vice president at Robert Fleming in New York where he established the Flemings Special Credits Group.
Schaeffer is joined at Scott’s Cove by Joseph Colquhoun who from 1992 to 1999 was senior vice president at Fahnstock & Co where he was co-head of the group responsible for managing the firm’s proprietary funds in distressed and high yield debt securities.
The Scott’s Cove Fund Limited is registered in Bermuda and the minimum investment is US$250,000.
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