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Bainbridge Partners has launched a new long/short equity fund to be managed by Chawkat Nammour, formerly of Crestwood.
The Bainbridge Strand Fund opened on Tuesday 1 April and will focus on the semiconductors, aerospace and software engineering sectors.
Nammour was previously senior analyst at Crestwood, a US long/short equity manager in New York, before joining Bainbridge last year.
The Strand Fund aims to generate attractive returns by investing in three growth industries with low intercorrelation, according to a statement from the $1.2bn firm. The strategy will employ a cyclical and thematic overlay, tilting the portfolio’s variable net exposure between 30% and 60% in the process.
The fund will be relatively concentrated, investing in approximately 10-15 long positions and 20-30 short positions globally, utilizing pair trades to mitigate the downside.
“Semiconductors represent a high barrier to entry, high-margin ‘toll road’ on technology innovation; aerospace is positioned for tremendous growth as 80% of the world has never flown; and engineering software benefits from exceptionally sticky business models,” said Nammour.
“To enhance returns, we aim to capitalize on cyclical inflections, both in end-markets and company-specific product cycles, using a counter-cyclical approach and pair trades for downside protection.”
The Strand Fund is structured as a Cayman entity and is available for subscriptions on a monthly basis. It employs a tiered fee structure with an “Early Bird” class and a “Class A”.
The fund offers monthly liquidity with monthly notice period and no lock-up. An Equity Market Neutral version of the strategy, currently funded by Bainbridge, is available in an SMA format.
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