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By Chris LarsonWarwick Capital Partners LLP, the

London-based hedge fund that started in august 2010, this week launched a Eu-ropean distressed debt “fund of one” with $200 million from a European institutional investor, according to chief operating of-ficer Matthew Coleman.

The investor was “looking for exposure to the European opportunity,” Coleman said in a telephone interview. he declined to identify the institution because the information is private. The firm’s assets under management are about $750 mil-lion after the allocation, he said.

The new fund, which started trading on Monday, is similar to the firm’s flag-ship Warwick Capital Partners’ European Distressed & special situations Credit

Fund. “Both funds are designed to take advantage of the distressed and special situations opportunities arising in Europe,” Coleman said.

The new strategy has a “private equity structure with five year capital,” he said. That structure “allows us to take longer-term, directional positions with a higher level of concentration.”

Ian Burgess and Alfredo Mattera founded Warwick in 2010, about a year after leaving Polygon Investment Partners LLP. The flagship fund, which started with $35 million, now has about $500 million and has returned about 1 percent this year through september, Coleman said. Warwick’s European Credit opportunities Fund, launched this april, has $40 million in assets and has

climbed about 6 percent since inception, according to the firm.

other hedge funds have been looking to invest in European distressed debt as European banks reduce their balance sheets to meet tougher capital require-ments. Capula Investment Management LLP, Apollo Global Management LLC and Marathon Asset Management LP all recently started funds focused on the sector. Strategic Value Partners LLC has invested more than $2 billion in distressed assets in the U.s. and Europe over the past 20 months, Bloomberg news re-ported in september.

London-based Capula last month expanded its distressed investment team, hiring Steven Heanly from Angelo Gor-don & Co.

Warwick Capital Launches $200 Million European Distressed Debt Fund

AntoIne Cor-nut to StArt HedGe fundThe former head of flow-credit trad-ing at Deutsche Bank, will likely start raising money next year for his firm, to be named Camares Capital. page 5

MAn GrouP SHAreS GAIn 3.8% In 5 dAySThe London-based firm an-nounced insider share purchases. page 7

deLtA PrIMe fund toPS uCItS tABLeThe Paris-based fund is up more than 17 percent this year. page 8

SPotLIGHtKathleen Kelley, Cio of Queen anne’s Gate Capital, discusses the new firm’s commodities-focused macro strategy. page 10

Greek SoVer-eIGnS BooSt tHIrd PoIntholdings of Greek govern-ment bonds have helped Daniel Loeb’s fund gain more than 10 percent this year. page 4

GAM’S GorMAn LIkeS turkISH CurrenCyThe Turkish lira should continue to rally, according to Caroline Gorman of GaM. page 5

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Zadig Funds Gain in september After selling PositionsZadig Asset Management LLP’s main hedge fund strategy, the long/short Zadig Fund,

climbed 2.2 percent in september, bringing year to date returns to 3.9 percent, according to a monthly performance report obtained by Bloomberg. The fund had 364 million euros ($474 million) in assets.

The firm’s Memnon Fund, a long-only fund with 268 million euros under manage-ment, climbed 2 percent in september and is up 17 percent year to date, according to a monthly performance report for that fund. Both vehicles focus on European equities and are managed out of Zadig’s London office.

The Zadig fund took a position in societe BiC sa, “in order to increase our exposure to the americas,” the letter to investors said. The fund has “sold its luxury stocks,” includ-ing PPr and swatch Group aG, and is still short spanish construction company sacyr Vallehermoso sa, whose share price has fallen from 40 euros in 2008 to 2 euros this week. The fund is short some “government related businesses” in France, and has been seeking distressed opportunities in Greece over the past year. “We only found” Folli Follie sa, the athens-based jewelry and watch maker that has “stores mainly in asia,” accord-ing to the letter.

The Memnon fund exited positions in Compagnie Générale de Géophysique, Val-lourec sa and allianz sE, after reaching price targets, and added a position in swedish telecommunications company Tele2 aB. The letter said the fund’s managers “believe the russian regulator decision over LTE neutrality could be a trigger for M&a activity” in the telecommunications sector.

The Zadig Fund is managed by Laurent Saglio. Memnon is managed by saglio and Vincent Bourgeois.

— Chris Larson

Radiance Japan Outperforms on nuflare, Endo Lighting Betsradiance Japan fund has outperformed hedge funds focused on the country by

investing in smaller stocks that investment banks tend not to cover, such as nuflare Tech-nology inc. and Endo Lighting Corp.

The fund has returned 3 percent through september since inception in June, said nori-hiro Hashimoto, the manager of the fund. That compares with the 0.7 percent advance by the Eurekahedge Japan hedge Fund index in the period. The 500 million yen ($6.4 million) fund is seeking to raise 1 billion yen over the next six to 12 months and increase assets to 20 billion yen in five years, he said.

hashimoto is focusing on companies that are less covered by analysts to find underval-ued stocks. his fund concentrates on investing in 10 to 15 stocks, with no single holding making up more than 10 percent of the total portfolio, he said.

“The absolute number of small-cap coverage in Japan is declining, so there are more investment opportunities in them,” hashimoto, 50, said in an interview in Tokyo. “That benefits managers like us that tend to have concentrated portfolios.”

The fund, which is sold to retail investors in Japan through brokerage hibiki shoken KK, employs a long-short strategy, hashimoto said.

he bought nuflare’s stock because the company was benefiting from increased demand for its electron-beam machinery and has gained 50 percent since the fund bought it, he said. The shares have advanced more than 140 percent since the beginning of the year.

Endo Lighting has also benefited from increased demand for its light-emitting diodes, or LED, lights, hashimoto said. The stock has also gained more than 140 percent this year.

The fund is targeting annual returns of more than 10 percent and expects to open to institutional investors after building its assets through individual clients to 1 billion yen, hashimoto said.

“The key to making returns now is to focus on a selective few that are promising to deliver the kind of returns you need,” said hashimoto, who previously ran a similar hedge fund under Tokyo-based hedge fund advisory company United Managers Japan inc.

— Tomoko Yamazaki and Komaki Ito

“Intellectually, I loved my job, but I didn’t get any meaning from it.”— Chelsea Clinton, on why she left her job

at Avenue Capital (see story, page 6).

QuOtE OF thE WEEk

Bloomberg Brief Hedge funds europe newsletter Ted Merz executive editor tmerz@bloomberg.net 212-617-2309

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10.05.12 Bloomberg Brief | Hedge Funds Europe 2

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10.05.12 Bloomberg Brief | Hedge Funds Europe 3

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By Chris LarsonThe euro zone, Greece and Portugal in

particular, has proven fertile ground this year for daniel Loeb’s third Point LLC.

“We have invested profitably in Euro-pean credit situations in 2012, generating a 35 percent return on average capital invested over the past six months while nearly tripling our gross investment in the area,” the firm said in an oct. 3 letter to investors, a copy of which was obtained by Bloomberg.

The new york-based firm profited from Portuguese bonds in the second quarter and Greek government bonds in the third, the letter said.

The firm cited two major reasons for the returns. “The first is that we often make money in credit situations where our assumptions are not rosy, but simply less draconian than those of a market in panic,” the letter said. Third Point also credited its “deep understanding of the complex political and economic issues facing the E.U.”

The market pricing of some Greek government bonds issued earlier this year “implied that a Greek exit from the Euro was a near certainty, which seemed unlikely to us based on our differenti-ated views of the European situation,” the letter said. over the summer, the firm “anticipated a strong reaction from the ECB and steadily increased our Euro-pean credit exposures through July and august, including purchases of Greek government bonds.”

The Third Point offshore Fund, which has $4.7 billion in assets, listed Greek sovereign debt as one of its five “top winners” for september, and among its six leading positions by size, in an oct. 2 regulatory filing. The fund climbed 3.4 per-cent in september and 6.8 percent for the entire third quarter; it is up 10.9 percent year to date, according to the filing.

Third Point has $9.3 billion under man-agement overall.

The quarterly letter included quota-tions from rapper Tupac shakur’s “Keep

ya heads Up” (“i’m tryin’ to make a dolla outta fifteen cents”) and Thucydides’ The history of the Peloponnesian War (“Fix your eyes on the greatness of athens…”).

separately, Third Point added shares of american international Group inc. last quarter, betting the stock will rise as the U.s. cuts a stake acquired in the insurer’s rescue.

aiG shares have “significant upside,” Third Point said in a letter to investors, as Treasury’s exit “will serve as a critical catalyst for the company,” allowing for a shift in compensation to an incentive-based bonus model.

“Chartis’s management, led by the talented Peter hancock, is emphasizing international and shorter-tail consumer property lines,” the letter said, referring to the Chartis property-casualty unit that is the company’s largest business.

Elissa Doyle, a spokeswoman for Third Point, declined to comment on the letter.

FunD FOCus

Loeb’s third Point shows 35 Percent Profit on European Credit investments

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36 south Capital Launches new Black swan strategyLondon-based 36 South Capital Advisors LLP this week launched a new tail risk

fund, the Black Eyrar Fund, with 15 million euros ($19 million). The fund will invest in long-dated options across all asset classes, including com-

modities, equities, interest rates and currencies, according to principal Anthony Lim-brick. “We can go anywhere we can find cheap convexity,” Limbrick said in a telephone interview. “There is some cheap convexity to be found. not extraordinarily cheap, but there is some.”

The Black Eyrar fund is intended to complement 36 south’s flagship fund, the Kohinoor strategy, a volatility/global macro hybrid that has $471 million in assets, Limbrick said. The firm has $516 million under management.

an earlier iteration of the black swan fund launched in early 2008 and closed later that year after climbing 204 percent.

36 south, founded by Jerry Haworth in 2001, announced the fund’s creation in March. “We have been waiting to launch this fund and feel now is the right time given market dynamics,” haworth, the firm’s chief investment officer, said in a statement. “We believe in buying when it is affordable and having the patience to ride out the cycle.”

an eyrar is a brood of swans.— Chris Larson

Ex-Deutsche Bank Credit trader Cornut said to start FundAntoine Cornut, who led flow-credit trading in the americas and Europe for deutsche

Bank AG, plans to start his own hedge fund, according to two people with knowledge of the matter.

Cornut, 37, will likely begin raising money next year for his fund, which will focus on European credit, said the people, who asked not to be identified because his plans are private. Cornut applied to register his firm, Camares Capital LLP, in august with the U.K.’s Companies house, according to a regulatory filing.

Cornut resigned from Frankfurt-based Deutsche Bank in July.Askin Aziz, 38, is among Deutche Bank employees who plan to join Cornut at Ca-

mares Capital, according to the Companies house filing. Deutsche Bank, Europe’s biggest bank by assets, hired aziz in september 2010 as a high-yield credit analyst from London-based hedge fund James Caird Asset Management LP, according to a press release issued by the bank at the time.

Cornut declined to comment. Flow trading typically consists of market-making transac-tions done on behalf of clients, involving liquid corporate debt and derivatives.

aziz didn’t immediately return a phone call seeking comment.at least 10 credit traders have left Deutsche Bank since the beginning of 2011 as the

lender limited cash bonuses.— Jesse Westbrook and Chris Larson

REstRuCtuRinGLion Capital LLP, Highbridge Capital Management LLC and JPMorgan Chase &

Co. will inject 220 million pounds of cash into Findus Group Ltd., cutting the company’s cash-pay debt by 49 percent to 366 million pounds. London-based Findus will use 125 million pounds of the cash to repay senior debt and 25 million pounds will be retained on its balance sheet. The investors will also provide a 70 million-pound credit facility to Findus, according to the statement. Cash-pay debt pays interest during the life of the loan while so-called payment-in-kind debt does not. Dale Morrison, co-founder of private equity firm TriPointe Capital Partners, will become non-executive chairman of Findus. Morrison was previously chief executive officer of Campbell soup Co. and Mc-Cain Foods Ltd., Findus said.

— Patricia Kuo

LAunChEs

GAM’s Gorman Says turkish Lira Should AppreciateBy yE xiE

Caroline Gorman, who helps manage $6.8 billion in emerging market debt at GAM International Management Ltd., said she has a positive outlook on the Turkish lira as the country’s central bank has taken steps to narrow the current account deficit.

“i personally like Turkish lira be-cause it is undergoing an external adjustment on the current account side, which is quite important,” Gor-man said in a telephone interview from London on sept. 27.

Turkish central bank Governor Erdem Basci has used his so-called rates corridor to cut borrowing costs by 318 basis points last quarter. his success in providing liquidity without undermining the currency and pushing inflation toward the central bank’s year-end forecast of 6.2 percent has helped sustain the biggest decrease in local currency bond yields among emerging mar-kets this year.

“some of the measures the central bank took appear to be working,” Gorman said. “That’s enough to give lira a positive outlook. We are rea-sonably comfortable with the lira.”

Basci began varying interest rates daily within the corridor in october, aiming to rein in the re-cord current-account deficit, stem a currency decline and control inflation. The central bank also raised bank reserve requirements to limit credit growth, restricting lending in an attempt to prevent the economy from overheating.

since then, the shortfall in the cur-rent account narrowed to 8.3 per-cent of gross domestic product in June from 10 percent in December, reducing the supply of lira overseas.

The currency has gained 7.3 per-cent since reaching a record low of 1.9224 per dollar on Dec. 28.

MARkEt CALLs

10.05.12 Bloomberg Brief | Hedge Funds Europe 5

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ex-Goldman traders Get Invest-corp Seed for Startup

rishi Chadda and Cyrus Pouraghaba-gher, two former Goldman Sachs Group Inc. senior traders, are starting a hedge fund with at least $50 million in initial capital from Investcorp.

Chadda and Pouraghabagher will start new york-based kingsguard Advisors LP on nov. 1, which will employ a global macro fixed-income strategy, according to a statement from investcorp. in addition to the allocation, investcorp will also provide Kingsguard with risk, marketing and op-erational services.

Kingsguard is the first global macro fixed-income strategy to which investcorp has given initial capital, deepak Gurnani, the firm’s head of hedge funds and chief investment officer, said in a telephone interview. investcorp has investments in six hedge funds, collectively holding $1.8 billion, through its seeding program. Kingsguard will try to profit from bets on interest rates, volatility, credit markets and mortgages.

Chadda and Pouraghabagher, both 37, started their careers as analysts in the mortgage department of Goldman sachs in 1997. Chadda became a man-aging director and worked in Goldman sachs’s interest-rate products group, and Pouraghabagher became a vice president on the firm’s mortgages desk.

— Kelly Bit

Carlyle Buys Vermillion in Com-modities expansion

Carlyle Group LP bought Vermillion Asset Management LLC, adding $2.2 billion in commodities assets.

Carlyle purchased 55 percent of Vermillion for a mix of cash, stock and performance-based payouts, effective oct. 1, Carlyle said in a statement. The price wasn’t disclosed.

Vermillion, created in 2005 by drew Gilbert and Chris nygaard, will be part of Carlyle’s Global Market strategies unit, headed by Mitch Petrick, a group that manages about $29 billion 53 funds. Gil-

bert and nygaard will continue to oversee the day-to-day operations of Vermillion and remain co-Cios of its funds. The new york-based firm has 43 employees.

Viridian, Vermillion’s main fund, has posted an average annual gain of 6.9 percent since inception in June 2005 through July of this year, according to a letter sent to investors in august. Com-modity hedge funds broadly rose 9 per-cent a year over the same time period, according to the newedge Commodity Trading index.

The $1.7 billion Viridian fund rose 0.6 percent last year and fell 7 percent through July of 2012, according to the let-ter. it follows a relative value strategy.

The acquisition is Carlyle’s third invest-ment in a hedge fund in two years. it bought a 55 percent stake in new york-based Emerging sovereign Group LLC in June 2011 after purchasing a majority holding of Claren road asset Manage-ment LLC in December 2010.

— Jason Kelly and Jesse Westbrook

OutsiDE EuROPE

OvER thE hEDGESteve Cohen eyes Grotjahn Masks

SAC Capital Advisors LP’ Steven Cohen and donald B. Marron of Lightyear Capital LLC attended Mark Grotjahn’s art show at Gagosian Gallery in new york.

The space resembles cardboard boxes, crudely cut up and splattered with paint to look like masks with protruding, Pinoc-chio-like noses. Displayed on pedestals, the pieces are actually cast in bronze. The daubs turn them into a hybrid of sculpture and painting, a direction the Los angeles-based artist explored in his 2011 “Face” series.

Prices range from about $100,000 to $250,000. “Mark Grot-jahn” runs through oct. 27 at 980 Madison ave.; +1-212-744-2313; http://www.gagosian.com/.

— Lili Rosboch and Katya Kazakina

Chelsea Clinton Left Wall St for More ‘Meaning’Chelsea Clinton says she left Avenue Capital Group LLC

three years ago to find more purpose. “intellectually, i loved my job, but i didn’t get any meaning from it,” says Clinton, 32, who worked at the new york-based firm from 2006 to 2009 as an associate. “i didn’t fundamentally become re-motivated every day in the way that i do now.”

Clinton has since earned a Master’s degree in public health from Columbia University, where she teaches a course in

cross-national health policy, and is working on a PhD in inter-national relations from oxford University. she’s on the boards of iaC/interactive Corp, the school of the american Ballet and Weill Cornell Medical College, and is a special correspondent for Comcast Corp.’s nBC television network.

her husband, Marc Mezvinsky, is the co-founder of the hedge fund eaglevale Partners LP. Clinton says she believes in the industry’s ability to improve the lot of the world’s poorest citizens, by investing in their enterprises.

“They need people like those on Wall street, who will be dispassionate about it and who will be gender-blind,” Clinton says. increasingly, “the development world is moving toward an investment mindset.”

she spoke about her Wall street job in an interview at the Clinton Global initiative’s annual meeting last week.

“i wanted to understand how people thought about money who were in the business of making money,” Clinton says. she was one of about three women on a trading floor of roughly 50, and appreciated that her success was measured by the numbers.

“it was incredibly, fiercely meritocratic, and i loved that,” she says “Quite literally, there was a bottom line to my performance.”

“Ultimately,” she says, “that wasn’t the metric i wanted to judge my life by in a professional sense.”

avenue, which was started in 1995 by Marc Lasry and his sister, sonia Gardner, and has about $12.5 billion in assets. Lasry is close to the Clinton family and a long-time donor to Democrats.

— Lindsey Rupp

10.05.12 Bloomberg Brief | Hedge Funds Europe 6

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IPO YTD YoY

Date %CHG %CHG

Fortress Investment Group LLC FIG US Equity 2/8/2007 4.50 33.14% 56.25% 10/31/2012

Gottex Fund Management Ltd. GFMN SW Equity 11/6/2007 3.00 15.38% -11.50% N/A

GAM Holding AG GAM SW Equity 12/29/1989 12.50 27.59% 23.36% 3/5/2013

Och-Ziff Capital Management Group OZM US Equity 11/13/2007 9.68 15.10% 7.20% 11/2/2012

Man Group PLC EMG LN Equity 10/7/1994 85.50 -31.98% -46.26% 3/1/2013

IPO YTD YoY NAV %

Date %CHG %CHG DISC/PREM

Bluecrest BlueTrend Ltd BBTS LN Equity 3/23/2012 103.88 2.34% N/A -1.0

BH Credit Catalysts Ltd BHCG LN Equity 12/14/2010 1061.00 5.47% 1.05% -3.3

BH Global Ltd BHGG LN Equity 5/23/2008 1136.00 -3.28% -5.18% -11.6

BH Macro Ltd BHMG LN Equity 3/9/2007 1990.00 -2.45% 0.71% -2.0

CQS Diversified Fund Ltd CQS LN Equity 12/15/2010 96.00 2.13% 5.79% -8.0

RAB Special Situations Co Ltd RSS LN Equity 5/31/2005 25.00 -9.09% -6.98% -24.6

Third Point Offshore Investors TPOU LN Equity 7/20/2007 10.28 4.90% 0.78% -21.2

IPO YTD YoY NAV %

Date %CHG %CHG DISC/PREM

Absolute Return Trust Ltd ABR LN Equity 2/22/2005 123.00 14.69% 12.84% -6.4

Absolute Invest AG ABSI SW Equity 11/8/2000 37.50 -1.32% -0.79% -7.3

Alternative Investment Strategies Ltd AIS LN Equity 12/31/1996 112.75 4.64% 8.67% -13.2

BlackRock Absolute Return Strategies BARS LN Equity 4/23/2008 900.00 -3.28% -2.44% -6.7

Bluecrest Allblue Fund Ltd BABS LN Equity 5/25/2006 165.80 -0.78% -0.96% -6.6

Castle Alternative Invest AG CASN SW Equity 4/10/1997 11.55 0.43% 8.96% -24.2

Dexion Absolute Ltd DAB LN Equity 12/18/2002 139.50 2.20% 7.31% -15.1

Dexion Equity Alternative Ltd DEA LN Equity 4/1/2004 123.13 7.07% 14.53% -3.0

Dexion Trading Ltd DTL LN Equity 11/29/2004 121.25 1.78% -1.22% -9.3

FRM Credit Alpha Fund Ltd FCAP LN Equity 3/1/2007 54.50 -8.40% -11.20% -34.1

Signet Global Fixed Income Strategies SIGG LN Equity 11/30/2006 61.63 -12.59% -17.56% -24.7

Thames River Multi Hedge PCC Ltd TRMA LN Equity 2/23/2004 121.00 3.97% 1.04% -8.7

NAME TICKER Last Price

TICKERNAME Earnings Date

Listed Firms

Listed Funds

Listed Funds of Funds

LAST PRICE

Source: Bloomberg. Prices as of end of previous business day. Prices in local currencies.

One-Year Price

One-Year Price

One-Year PriceNAME TICKER LAST PRICE

Man Group PLC’s shares gained 3.8 percent over the past week to close yesterday at 85 pence after an announced share purchase by finance director Jonathan sorrell. on sept. 13, sorrell purchased 250,000 of Man Group’s shares, according to figures compiled from Financial services authority filings by Washington service and reported by Bloomberg news on oct. 1. The same day, the company was downgraded to “underperform” from “neutral” by Macquarie research analyst neil Welch, who supplied a 12-month target price of 71 pence per share.

— Nathaniel E. Baker

PuBLiC hEDGE FunDs

LEARN MORE ABOUT BLOOMBERG’S OMSSOLUTION FOR HEDGE FUNDS.

10.05.12 Bloomberg Brief | Hedge Funds Europe 7

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FiRM FunD MAnAGER(s) inCEPtiOn DAtE shARPE RAtiO ytD REtuRn (PERCEnt)

Delta Alternative Management S.A.S/France Delta Prime - ESSF Frederic Haym Thibaut Sciard 3/14/2008 3.56 17.43

BNP Paribas Investment Partners Luxembourg SA BNPP Flexi - Tactical Str-C Willem Klijnstra 5/9/2007 1.37 12.91

OZ Management LP MLIS-Och-Ziff EUR M/S-€BA Michael L Cohen 3/30/2011 1.88 8.06

UB Fund Management Co Ltd/Finland UB Pension Fund-Acc Aki Kostiander Pekka Niemela 12/1/2003 2.75 6.8

Swiss Life Funds AG/Switzerland Swiss Life Flex-Dyn All S€-I Pierre Guillemin Sebastian Richner 2/28/2006 1.92 6.45

a look at some of the best-performing UCiTs multi-srategy hedge funds that report to Bloomberg data. returns are through sept. 28. For questions please contact Toni Parlov at tparlov@bloomberg.net or Elisa Barany at ebarany@bloomberg.net.

uCits PERFORMAnCE snAPshOt: MuLti-stRAtEGy

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DAtE EvEnt FEAtuRinG LOCAtiOn COntACt / REGistRAtiOn

Oct. 11 100 Women in Hedge Funds' London Gala

Oxford University Endowment CIO Sandra Robertson to receive European Industry Leadership Award.

London (location provided to attendees) http://bit.ly/Ifpflb

Oct. 16-18 GAIM Ops International Loic Fery, Chenavari; Werner von Baum, LGT Capital; Christian Szylar, Marshall Wace.

Crown Plaza Paris-Republique http://bit.ly/RZy9yh

Oct. 18, 6pm 100 Women in Hedge Funds Education Session

"The New Philanthropy: Donations, Gifts, Invest-ments?"

Credit Suisse, Paris http://bit.ly/S6zVZ9

Oct. 22-24 Morgan Stanley's 13th Annual European Hedge Fund Forum

One-on-one meetings with about 70 hedge fund managers.

The Westin Paris - Vendome

Katie Willis, +44 20 7677-7010; Tracey Jarvis, +44 20 7425-4605; euroforum@morganstanley.com

Oct. 24-25 Terrapinn's Hedge 2012 "Brings institutional investors together with leading hedge funds."

London (exact location to be determined) http://bit.ly/LLdKUL

Oct. 25 Hedge Funds Care U.K. Autumn Affair Industry party. The Rose Club, London http://bit.ly/SQZqgS

Oct. 29-31 Deutsches Family Office Forum German-language event. Full day devoted to alterna-tive investments.

Park Hyatt Hotel, Hamburg http://bit.ly/Pc2iGG

Oct. 30 Shorex Wealth Management Forum Zurich One day exhibition and conference. Only buyside professionals invited to attend.

ConventionPoint, Zurich www.shorexzurich.com

Nov. 6, 6pm 100 Women in Hedge Funds Education Session

"Sovereign Wealth Funds as Strategic Investors in Domestic and Global Markets."

UBS Conference Center, Zurich http://bit.ly/UUMRph

Nov. 6-7 Terrapinn's Quant Invest "Brings institutional investors together with global quant managers."

Hotel Lutetia, Paris http://bit.ly/JPZQAJ

Nov. 7 TradeTech Nordic Per Moller, Nordea; Anders Kulp, Estlander & Part-ners; Mikkel Perlman, Danske Capital.

The Grand Hotel, Stockholm http://bit.ly/Smtctu

Nov. 7, 6:30pm 100 Women in Hedge Funds' Geneva Gala To support All Special Kids. Grand Hotel Kempinski,

Geneva http://bit.ly/L5LUHN

Nov. 7-8 Roundtable Forum "Informal groups, spontaneous dialogue, better understanding, new relationships."

Zurich and Geneva (location provided to attendees) www.roundtableforum.com

Nov. 8-9 Uniglobal's World Wealth Management & Family Office Forum

"The latest issues and trends in planning and manag-ing wealth and family offices."

Zurich (exact location to be determined) http://bit.ly/Nkci1r

Nov. 13 Emerging Managers Forum Zurich 2012 Sixteen sub-$500 million funds present to 20 inves-tors. Invitation-only event.

Zurich (location provided to attendees) http://bit.ly/KnOGrV

Nov. 14 15th Annual Hedge Funds World Zurich Jeroen Tielman, IMQubator; Sassan Zaker, Julius Baer Pension Fund.

Dolder Grand Hotel, Zurich http://bit.ly/IHhDML

Nov. 20 Bloomberg Forex Conference James Rickards, JAC Capital; Jim O'Neill, GSAM; Thomas Kressin, PIMCO

London (exact location to be determined) www.bloomberglink.com/forex

Nov. 20-21 Lugano Fund Forum "Introduces managers based in the area to local and international financial institutions."

Palazzo dei Congressi, Lugano, Switzerland http://luganofundforum.ch/en

Nov. 22 Euro 3PM Association Luncheon Annual Thanksgiving lunch gathering of third-party marketing association.

London (exact location to be determined)

Sabine Guggomos, sabine@liabsol.com

Dec. 1 100 Women in Hedge Funds' Winter Fund-Run and Fundraiser

Run/walk in Geneva's old town, to support All Special Kids.

Course de l'Escalade, Geneva http://bit.ly/RhsscF

Dec. 6, 7pm Hedge Funds Care's Seventh Annual London Benefit Black tie event hosted by comedian Omid Djalili. Science Museum, South

Kensington, London http://bit.ly/UuyHYV

Jan. 24-25 Crest's 5th Annual Hedge Fund Research Conference

Academic sessions to debate the future of the hedge fund industry. Call for papers with preliminary ver-

sions due Sept. 30.

NYSE Euronext, Paris troaore@crest.fr

Feb. 12-13 The Trading Show Europe "Europe's annual conference for HFT, commodity, energy and derivative traders."

London (exact location to be determined) http://bit.ly/Prw77R

March 26-27 EDHEC-Risk Days Europe 2013"The must-attend annual conference for industry professionals within the institutional investor and

fund manager communities."

The Brewery, London http://bit.ly/T6kFkd

April 8-9 IMA Conference on Mathematics in Finance

Call for papers on systemic risks, "super-portfolios," complex systems, behavioral finance, Knightian un-

certainty and more. Deadline for abstracts is Dec. 15.

Edinburgh Conference Centre, Heriot-Watt University http://bit.ly/L8OWH1

CALEnDAR OF EvEnts: EuROPE To submit an event email hedgebrief@bloomberg.net

10.05.12 Bloomberg Brief | Hedge Funds Europe 9

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Q: Why is now a good time to launch a global macro fund?A: in general i think the markets are not particularly crazy about hedge funds, but people still want macro exposure because they see all of the macro impediments out there in the world and want some managers that can capture that. in addition, traditionally macro is negatively correlated with equities. if there are hiccups going into year-end or next year given the uncertainties in the U.s. economy, it should be an area that will do fairly well. The other thing is, a lot of macro managers are closed or are closing to new investments or actually shutting down. so there’s definitely more funds looking for a home in the space.

Q: right. Louis Bacon recently announced he’ll return $2 billion to investors. A: With a smaller size, it’s much easier to move around and to capture opportunities without moving the markets. i think that definitely plays to our strengths.

Q: What’s your fund’s capacity?A: We’ll soft close at $750 million. i was running $450 million when i left Kingdon, and we think the sweet spot is between $500 million and $750 million. so we’ll soft close and evaluate what we need to do to take it to the next level.

Q: your fund formally launched oct. 1, but you did a soft launch at the start of September?A: We really wanted to be up and run-ning for sept. 1, just because septem-ber had so many different data points coming in, between the ECB and the FoMC and employment numbers and the German Constitutional Court. There

was definitely a lot of information that we wanted to be able to capitalize on if we saw opportunities.

Q: How have you done so far? A: We’re up a couple percent. The general premise that i’m operating under is that the world is in the middle innings of this deleveraging cycle. When our team looks at the commodities space, we start by building supply and demand models in each commodity. in a deleveraging environment, demand is generally contracting. Unless you can find a really good supply story, you want to be looking at individual commodities from the short side. you have to either find a great supply story, or you’re going to be building surpluses in a lot of these markets. so we are definitely evaluating each market from that framework. The point is that basically we have some shorts on in the commodities space, which did well last month.

Q: Commodities is your main focus, but you’ll also look at fX and fixed income?A: Fx is usually a smaller portion of our allocation. in the fixed income space, after Draghi’s speech, we’ve been look-ing at a rebalancing in Europe, where the tail risk is taken off. italy has basi-cally put the right reforms through, and is actually being fairly market friendly by making those labor market reforms, whereas France is doing the opposite, taxing individuals and not making the same kind of reform effort. so, we’ve got a BTP versus oaTs spread on, for example. Just in general, we’re thinking that the trades that people put on as

safe havens - you don’t necessarily need them anymore. Being long gilts, and being long bunds, those sort of trades, we’ve been shorting those as well.

Q: do you have any fundraising targets at this early stage?A: Definitely we’d like to be into the $100 million to $200 million level as soon as possible, because that makes it easier for us to raise money from some of the bigger investors. But more importantly we just want to make money in the markets.

Q: you’re based in new york; are you fo-cusing exclusively on the u.S. market? A: no, we actually first put together the structure for the fund in London, because i was living there at the time, and did a lot of early marketing in Europe, in England specifically. and then, once we got back here, we really hit the american market more, i did the CnBC Delivering alpha conference in July, for example. We’re definitely talking more to the ameri-can market now, but i’m going back to London in october to do a cap intro event there. so we’re going back and forth really. But pretty much the advice we get from almost everybody is that there is more happening in america now on the fundraising side than there is in Europe, for obvious reasons.

Q: Let’s close with a softball. Why the name Queen Anne’s Gate? A: i lived in London for the last year, and was living on Queen anne’s Gate. That’s where the name came from: the name of the street where we lived.

kathleen kelley, chief investment officer at Queen Anne’s Gate Capital Management LLC, spoke to Bloomberg’s Chris Larson about her firm, which this month launched its flagship global macro fund. Kelley set up the new york-based start-up after leaving Kingdon Capital Management LLC in 2011.

sPOtLiGht

Ex-kingdon Capital Manager kathleen kelley on her new Launch

Age: 47

hometown: Saratoga, New York

Residence: New York City

Education: Smith College, London School of Economics

Charitable Work: Co-founder of High Water Women. Happy Hearts Fund and

BELL (Building Educated Leaders for Life)

Favorite new york City Restaurant: Toby’s Public House on Kenmare Street

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