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Alternative Market Briefing

Oil veterans launch relative value energy arbitrage fund with minimal leverage, aim at 30%

Wednesday, May 16, 2007

From Benedicte Gravrand, Geneva: In the hedge funds arena, managers such as T. Boone Pickens, John Arnold (Centaurus), who reportedly was on the other side of Amaranth trades, or Duncan Goodwin (Martin Currie) have proven to do the right bets whereas Amaranth and MotherRock famously went on the wrong side of the game.

Hedge funds learn from those experiences and develop more sophisticated risk management parameters including strong analysis, low VAR, NAV control, detection of anomalies and capital preservation through stop loss guidelines. This is just what a new Stamford-based hedge fund, Camdex Partners, LLC, will be doing when launching in September. The manager will also make full use of his in-depth industry knowledge and experience, being the most valuable asset a fund can have.

Opalesque talked one of Camdex’ partners, Mr. Christopher Tagatac.

Relative value arbitrage with minimal leverage The fund’s strategy is fundamentally based relative value arbitrage, with up to 80% in arbitrage trade and up to 20% in directional long/short opportunities. Trades are mainly in oil and natural gas and leverage will be minimal. The target investments are physical, futures and OTC derivatives in oil and natural gas markets, as well as coal, electricity and weather.

Camdex Partners’ edge is in the fund manager’s 30 year-experience and the proprietary database software he has been developing, that ident......................

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