Daman, Facet and Commander launch first ever Gulf hedge fund

This is also the first computer model aided stock analysis fund to be launched in the region.

The Cayman Islands-registered Fund will make use of Commander Asset Management's proprietary risk analysis programme model to effectively advise on the timing of the purchase and sale of individual stocks chosen by Daman.

"Commander's systematic non emotional approach should enable us to take advantage of the positive aim to target better returns over the long run" said Shehab Gargash, Managing Director, Daman Asset Management.

Minimum investment in this Fund is US$1 million and the anticipated size of the fund is expected to be US$40 million. Redemptions will be quarterly and the initial dealing date is the 24th February 2005.

The GCC capital markets have seen tremendous growth in recent years, with a combined value in excess of US$500 billion; Saudi Arabia, alone, has a market capitalization in excess of US$300 billion, & is larger than the Mumbai stock market.

"The fund uses the flexibility of hedge fund structure with systematic trading combining Daman's regional expertise and knowledge of the market with the modern risk management experience of Commander/Facet," said Gregor Scott, Managing Director, Facet Funds.

The fund is specifically designed with the ability to hold shares (equity) or cash. Individual positions are sold when conditions dictate and cash is held until a reinvestment opportunity arises in that particular stock. Currently the portfolio consists of 72 stocks from GCC, out of 450+ that have been evaluated.

The Fund, offered only to Institutional investors and high net worth individuals, has been running since December 2002 in a test format. Over this period the Fund has returned 176.6% (as at 31/01/05) with an average monthly return of 4.2% which equates to an annualised return of 62.9%, similar to the GIC GCC Index, against which the Fund is benchmarked.

"It is important to note that the average dynamic cash position of the Fund over the period was 24%. The Fund's ability to hold cash up to 100% is an important feature for both capital preservation and achievement of compound growth, regardless of market trend." said Mark Randall, Managing Director, Commander Asset Management Ltd (CAM).