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Opalesque Exclusive: Cairn launches structured credit hedge fund to capture current dislocations Benedicte Gravrand, Geneva: Cairn Financial Products Limited (“Cairn”) – the London-based specialist credit asset management firm – has launched a new fund aimed at a range of institutional investors.

The Cairn Capital Structured Credit Fund (“SCF”) – the portfolio manager for which is Andrew Jackson, head of quantitative research – launched to investors in December 2007 and has delivered three months of positive returns totaling more than 5 per cent net of fees. SCF will target annual returns in excess of 15% net of fees, with no performance fees payable until performance reaches a LIBOR plus hurdle. SCF has a target annual volatility of around 5%, and investors will be expected to invest a minimum of US$1.5m.

“We launched the fund in late December 2007 with the objective of capturing some of the opportunities given the current dislocations in the structured credit market,” said Cairn's investor relations manager Manuel Delgado in an email communication to Opalesque. “The opportunities will come from three markets: corporate credit, ABS and leveraged loans.

“Andrew Jackson's background and skill set is perfect for the kind of market we are dealing with. Disciplined trading and a high understanding of the technical factors currently dr......................

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