Kairos Invests in Crescendo
Byline: Niki Natarajan
Citco Kairos, Italy's first onshore fund-of-hedge-fund operation, is understood to be one of the seed investors in Zurich Scudder Investments' Crescendo UK Hedge Fund. The UK hedge fund, run by Paul Findley, has already raised some E60m ($54m) since inception on June 1, 2001, also including seed capital from Global Asset Management.
Kairos Partners is working with Citco, a hedge fund administrator, to sell Pegaso, the Italian-registered fund of funds. The joint venture, set up by Paolo Basilico, the former head of Giubergia-Warburg in Milan, selected hedge funds from more than 3,500.
The new Italian rules mean that the new fund of hedge funds will have the same 12.5% tax rate as an Italian mutual fund. It will be allowed to have a maximum of 100 investors per fund and a minimum entry threshold of [euro]1m.
Kairos has launched four Pegaso funds: Pegaso European Equity Fund, investing in European equity markets; Pegaso US Equity Fund, which will invest in the US equity markets; Pegaso Low Volatility Fund, which uses arbitrage strategies to exploit price anomalies in various markets; and Pegaso Multi-Strategy Fund, which uses a combination of the first three.
Findley, who also runs [pound]1.5bn in long-only UK equities, says that the typical investors in the two Crescendo funds are fund of funds and that the firm tries to avoid what is known as "hot money". This is defined as assets that chase performance and flee a fund at the first sign of dipping numbers. …