Ex-Bear Stearns executive Steven Zoernack has launched a USD176 million multi-strategy hedge fund dubbed the African Peace Fund, which will reinvest 25% of its fees in Africa, FINalternatives reports. The offshore offering debuted from his firm GlobalHedge in January and is up 75% through November.
Zoernack uses equity long/short, global macro, and statistical arbitrage strategies, with various directional equities and futures. Commenting on the fund’s rise amid equity market drops, Zoernack noted: “We do have a slightly negatively biased fund so in bear markets we tend to do better…So we’re buying an equally-weighted share of Visa and selling an equally-weighted share of MasterCard. If you looked at that trade anytime this year, you’ll see that that trade has worked and we believe that it’s going to continue to work.”
The reinvested money will go toward African economies to support peace making initiatives, and build schools, infrastructure or medical facilities. The fund charges a 3% management fee and a 25% incentive. Next year, Zoernack said GlobalHedge will expand its lineup with four offshore hedge funds, including a Shariah-compliant fund, a foreign exchange fund, an equities product and an energy vehicle.
This article was originally published in Alternative Investment News.