Investcorp wins $1bn in hedge fund mandates from US institutions

Mohammed Al Shroogi, Investcorp's President of Gulf business, said:

"The two US institutions who awarded us these new mandates are existing clients, who have been investing in Investcorp's hedge funds programs since 2007, before the financial crisis. It is significant, and a pleasing endorsement, that they are, at this time, further increasing their allocations, and by significant amounts, to our hedge funds."

"This reflects a growing trend among US institutional investors, who are currently increasing their portfolio allocations to alternative investment classes, in particular to hedge funds. We are anticipating a similar trend here in the Gulf region, with positive indications of interest in our meetings with Gulf-based institutional and ultra high net worth investors to increasing their weighting to hedge funds, as they look to reposition portfolios for stronger returns," he added.

Khalid Al Rumaihi, Investcorp's head of institutional investments in the Gulf, said, "Our 13 year track record, as well as strong returns of 12.3% in the first six months of 2009 coupled with innovative risk management, is positioning us well with Gulf investors, as investor confidence is returning."

The first US mandate is a $250m investment from one of the largest listed insurers in the United States, which has an investment portfolio exceeding $100bn; the second is a $60m mandate from one of the largest US public pension plans, which has over $90bn in assets under management. Investcorp is investing these new mandates using a global macro investment strategy, a style of investing that finds opportunity in variations in interest rates, foreign exchange rates and other macro economic differences.

Investcorp's hedge fund business currently manages, on behalf of Investcorp's private and institutional clients, a range of funds of hedge funds and structured fund products. The underlying hedge fund managers invest in a variety of liquid financial instruments, including equities, bonds, and derivatives. In addition, through its single manager programme, Investcorp provides investor's access to talented hedge fund managers who have started their own funds.