Investcorp partnership with Cura Capital Management offers clients new hedge fund product

Sophisticated investors use hedge funds to increase the overall performance of their investment portfolio. Hedge funds can generally achieve higher returns, relative to risk, than traditional investments by using a range of innovative investment styles, hedging strategies and financial instruments.

This partnership is the first in a number of such relationships to be made by Investcorp's asset management group in order to offer clients in the Gulf region the opportunity to invest with emerging and best-in-class individual hedge fund managers. Investcorp is acting as Fund sponsor by dedicating investment and risk management resources, as well as business support, to oversee investments with managers such as Cura.

Based in New York, Cura was founded in 2004 and has over $190 million assets under management, as well as a demonstrably strong track record. Cura is led by Thomas Schnepp, formerly with the leading fixed income hedge fund manager the Clinton Group.

Ibrahim Gharghour, co-head, alongside Deepak Gurnani, of Investcorp asset management, said: "Access to the capabilities of leading managers such as Tom is highly restricted and so our clients are excited to have this opportunity. Response to this new product is proving very positive."

Investcorp's hedge funds business, which comprises a range of hedge fund products to meet different client needs, now manages more than $3.7 billion in total, of which client assets account for $2.2 billion and Investcorp's proprietary investment accounts for $1.5 billion. Clients added a record $375 million to the program during the 2005 fiscal year. The Investcorp hedge fund program is now one of the largest in the world.

Deepak Gurnani said: "Our fund of hedge funds program performed reasonably well during Fiscal 2005 in the face of what was widely recognized as a subdued year for all hedge funds globally. It generated steady results for investors, preserving capital and delivering, in the face of some specific market challenges, a reasonable spread over cash returns. I am pleased to say that, following this period of relatively muted performance, the outlook for hedge funds now looks good and we have seen very strong returns in June, July, August and September.

"The non-correlated nature of our asset management business compliments our private equity, real estate and venture capital products, and allows further diversification for clients who prefer a more liquid form of investment. The increase in client assets in our program this year demonstrates how effectively we are meeting the needs of our investor base."