PRESS RELEASE DALTON STRATEGIC PARTNERSHIP LAUNCHES MELCHIOR EUROPEAN FUND

Transcription

1 PRESS RELEASE DALTON STRATEGIC PARTNERSHIP LAUNCHES MELCHIOR EUROPEAN FUND 6th October 2006 Dalton Strategic Partnership (DSP), the global investment management firm, continues to build its $1.3bn hedge fund business with the launch of the Melchior European Fund (MEF), a Pan-European Long/Short All-Cap Equity Fund. The fund will be managed by Leonard Charlton, who joined Dalton Strategic Partnership in 2006 to launch the MEF. Charlton has eight years experience in trading and investment. He started his career as an equity trader for Goldman Sachs and moved to GLG in 2003, where he became Co-Manager of the GLG Europe Fund in 2004/2005, working with the GLG European Long/Short team. Charlton has a strong track record of making positive returns in down markets from shorting stocks, sectors and indices and a record of making money for investors. Charlton will have the flexibility to draw upon DSP s long only, European specialist team which is led by James Hordern, the portfolio manager of the Melchior European Opportunities Fund, a specialist long-only European equity fund. DSP believes that the combination of a portfolio manager with proven trading skills and access to a team of fundamental stock-picking experts should produce strong risk-adjusted returns for investors.

2 The MEF will target returns of 12% per annum irrespective of market direction and expects to operate within a volatility range of 6% to 12% per annum. Draw-down will be contained through the use of stop losses for individual stocks and the portfolio as a whole. Charlton will be responsible for daily risk management and will work closely with Dr Rajiv Sachdeva*, the firm s of Risk. Typically, the MEF will hold 20 to 80 stocks on the long side and 10 to 30 short positions plus index swaps and futures. Typical position sizes will range from 1 to 10% on the long side and -1 to -10% on the short side. A gross exposure limit of 300% leverage will be applied with net exposure limited to -50% to +50% on a beta adjusted basis. I am confident MEF will offer investors positive absolute returns and genuine protection on the downside. Charlton is a trader with particular skills in managing short portfolios. He will be ruthless in exiting positions if required. Charlton s skills are complimented by the fundamental research and long portfolio management skills of James Hordern, commented Magnus Spence, Founder Partner, DSP. This fund provides me with the opportunity to have a real impact on DSP and it is tremendously exciting to be working on ones own fund. I am delighted to be working with such a talented team and I expect to benefit from the outstanding investment debate within the firm. I am particularly delighted to work with James Hordern and benefit from his experience in European markets, commented Leonard Charlton, MEF Portfolio Manager. MEF Key Features; Fund Objective: targeted return of 12% p.a. with a relatively low volatility of between 6 and 12% annualized.

3 Target a low correlation to European equity markets Strategic use of futures, options and swaps to hedge portfolio Minimum Subscription: $1,000,000 Management Fee: 1.5% Incentive Fee: 20% Redemptions: Monthly liquidity, with a 2 month notice period Two share classes: Euro and USD Fund domiciled in the Cayman Islands, and listed on Irish Stock Exchange Fund launches 2 nd October with a minimum $20 million. Fund will be temporarily closed at $100 million (May want to give reason and conditions for when it will reopen to accept more money) Hordern has an 11 year track record of achieving significant returns on the long side and also has experience of managing a European equity long-short fund. He began his career as an European equity manager at Mercury Asset Management before joining Goldman Sachs Asset Management as Head of the European Specialist team in Hordern joined DSP in Charlton and Hordern are supported by two analysts - Siddarth Lall and Michael Parsons. DSP s European equity team uses proprietary research, including 500 company one-on-one meetings per annum, which will offers a rich database of investment ideas. *Dr Rajiv Sachdeva, Founding Partner, was formerly head of Risk Management at Western Asset Management in London. He has managed fixed income portfolios at Merrill Lynch Investment Managers (MLIM), where he was also responsible for Fixed Income Technology and Analytics. His early career was spent at Bankers Trust Company, where he analysed risk in derivative portfolios across multiple asset classes. He qualified as a Medical Doctor at the University of Newcastle upon Tyne, before gaining a PhD in Experimental Particle Physics at Imperial College.

4 Ends For further information, please contact: Magnus Spence, Partner, Dalton Strategic Partnership LLP +44 (0) Sophie Hull, Charlotte Kettle Vanbrugh Financial Communications Ltd +44 (0) /0 Notes to Editors Dalton Strategic Partnership (DSP) is a global investment management firm founded in 2002 by Andrew Dalton and a number of former colleagues from Mercury Asset Management/Merrill Lynch Investment Managers. Assets under management are US$3.4 billion (as at 30th September 2006). The firm s investment approach is underpinned by 3 core investment philosophies. Investments should be managed in a global context, rather than within a narrow focus on one country or region. A global debate using macro-economic research and global investment horizons drive DSP s active investment approach. DSP has a highly experienced team of global investment managers who provide topdown views. These views are supported by market-specific research from specialist regional equity teams. With this background we believe that active investment management by talented stock pickers can consistently out-perform market indices. DSP aims to achieve absolute returns. The managers use short selling strategies in their hedge funds and construct specialist, long-only equity portfolios. These portfolios are unconstrained by benchmark considerations and can hold significant cash levels. DSP believes investors will achieve better returns from investments based on conviction and fundamental analysis by skilled fund managers in concentrated portfolios. A disciplined approach to risk management incorporates a proper understanding of risk and a sensitive approach to its application to portfolios. Risk is controlled by using sophisticated risk modelling techniques and fundamental analysis of stocks, recognising any dangers within them, rather than measuring risk with reference to benchmark indices. DSP views the global investment environment as being unlikely to give outstanding returns over the next five years unless investors take a discerning approach. Investing in funds that hug benchmark indices will not produce the best returns. However, average returns of 5-8% per annum from equities will hide a huge disparity of returns from individual companies. DSP believes the under-performance of growth stocks, over the last five years, provides opportunities for stock pickers and potential return will be found in companies that are undervalued, under-researched and yet have sustainable growth earnings and clear, dominant franchises. As a result DSP s fund managers tend to focus on mid to small-cap stocks in the developed markets. DSP has identified several investment mega trends. Japanese recovery, India, Greater China, commodities, precious metals and oil have the potential to be great mega trends over the next 20 years. DSP has three core businesses - a hedge fund business; a unit trust business, which manages a range of specialist long-only regional equity funds and sector funds; and a segregated portfolio management business offering global flexible asset allocation. DSP is authorized and regulated by the Financial Services Authority. Dalton Capital (Hong Kong) Limited is authorized and regulated by the Securities and Futures Commission in Hong Kong. These are both owned by Dalton Capital (Guernsey) Limited which is regulated by the Guernsey Financial Services Commission.

5 Product Range - Melchior is the brand name of DSP s funds. Long-Only Specialist Funds Hedge Funds Investment Trusts Segregated Portfolios Melchior Japan Opportunities Fund Melchior European Opportunities Fund Melchior North American Opportunities Fund Melchior Asian Opportunities Fund Melchior UK Opportunities Fund Melchior Global Macro Fund Melchior Japan Fund Melchior Japan Fund 002 Melchior Japan Investment Trust Listed on the London Stock Exchange Global Flexible Asset Allocation Portfolio Minimum investment $10million Balanced Investment Programme Minimum investment $1million These funds are all sub-funds of the Melchior Investment Funds Open- Ended Investment Company, which is an OEIC with variable capital authorised by the FSA. Minimum investment 10,000 Minimum investment $1million. Melchior Selected Trust Japan Opportunities Fund Melchior Selected Trust Greater China Opportunities Fund Melchior Selected Trust Japan Advantage Fund These funds are sub-funds of the Melchior Selected Trust, a Luxembourg SICAV authorized by the CSSF in Luxembourg. Minimum investment $10,000. Melchior Indian Opportunities Fund. Minimum investment $100,000. Disclaimer This press release ( release ) is issued by Dalton Strategic Partnership LLP ( DSP ), which is authorised and regulated in the UK by the Financial Services Authority. DSP is a limited liability partnership incorporated in England and Wales with Partnership Number 0C Registered Office: Third Floor, Princes Court, 7 Princes Street, London EC2R 8AQ. This release does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any shares or any other interests nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract thereof. This release is not directed at you if you are not a journalist or press officer, or if we are prohibited by any law of any jurisdiction from making the information in this release available to you. Recipients of this release who intend to apply for shares or interests in the Funds are reminded that any such application may be made solely on the basis of the information and opinions contained in the Prospectus or other offering document relating thereto, as and when they become available, which may be different from the information and opinions contained in this document. Please refer to the relevant Prospectus or relevant offering document. Any research, analysis or views included in this release has been produced by DSP in relation to its investment activities and should not be relied upon for any personal use. Any opinions expressed herein are made as at the date of publication and may change without notice.

6 All data and statistics are sourced from DSP unless otherwise stated. Performance statistics are not necessarily based on audited financial. Past performance is not necessarily indicative of future results and you may not retrieve your original investment. Changes in rates of exchange may affect the price of units or shares. Please use the following internet address to view important information about the Dalton companies: