Sapphire Global Fund Intends To Hunt Super-Illiquid Assets

Ravi Mehra, previously engaged in Vega Asset Management, plans to launch the Sapphire Global Fund with Jess Sa Requejo, former Banco Santander trader. New EU regulated fund will focus on providing liquidity to a structurally illiquid market. According to Mehra,

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Ravi Mehra, previously engaged in Vega Asset Management, plans to launch the Sapphire Global Fund with Jess Sa Requejo, former Banco Santander trader. New EU-regulated fund will focus on providing liquidity to a structurally illiquid market.

According to Mehra, Sapphire Global will be a three-year closed-ended fund with a global macro focus. It will seek to purchase illiquid assets from distressed sellers rather than purchase distressed assets, and will not use leverage in any of its core investments.

Until 12 months ago, hedge fund managers could rely on easy access to leverage, credit default swaps, and numerous other OTC instruments readily provided by the big investment banks, says Mehra.

The industry’s successes of the future will be based on a very different set of criteria from that which served the industry well for so many years. Managers who can reinvent and adapt themselves will be the big winners in the new decade.

The focus on recognising intrinsic value in assets, due to technical illiquidity that others just ignore, will have great reward, continues Mehra. The ability to buy these super-illiquid assets at once-in-a-lifetime discounts and, where appropriate, hedge out some market based exposure, will be the mantra of the new titans of the industry.

L.D.

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