Hedge Fund Review 2008-09-09
Fund of hedge funds manager Parker Global Strategies (PGS) has launched a sector-focused strategy investing in US energy infrastructure. The fund, known as PGS High Income Trust (HIT), initially launched with $500 million. The fund allocates to five managers running customised mandates for the trust.
Parker said the strategy provides a diversification opportunity as the correlation with traditional equity and bond markets has been relatively low over the years.
“In a period with extremely challenging markets, we favour strategies which provide attractive yields, solid underlying business fundamentals and liquidity,” said Virginia Parker, managing member and chief investment officer of PGS.
This is the second fund PGS has launched in energy and natural resources. The first, PGS Global Energy Edge, launched in March 2007 and allocates to energy, natural resources, water and environmental strategies.
The fund expects to attract primarily Asian investors but is offering it globally. It is domiciled in a Cayman Islands and does not have a prime broker. It has a yearly 1% management fee and a 20% performance fee.
Parker added her company had been researching and looking for several years at the sector. “The investment opportunities were compelling for this area so we decided to investigate it. Yields are close to 9% and the growth rate is going up. The fundamentals of companies in the sector are strong and there is liquidity,” she said.
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