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From Kirsten Bischoff, Opalesque New York: A January issue of "The Pipes Report" revealed that as of the first two weeks of 2009 only 17 separate investment managers are known to have invested in 18 PIPEs, comparable to 69 investors in 47 PIPEs during the first two weeks of 2008. One fund which entered this space almost exactly a year ago, only to witness the dramatic drop off in competition within this space, is Cape One Financial.
Industry managers focused on first lien and senior secured?
Cape One is a New York based firm with a multi- strategy, micro cap hedge fund which utilizes a range of investments into firms that range from pre-IPO to Mid Cap Companies. Industry wide, multi-strategy funds returned -23.63% (Credit Suisse Tremont Hedge Index) in 2008 and distressed and restructuring funds lost -25% (HFR) in the last four months of 2008 and , as Cape One ended its first year returning +8.34%.
Founder and portfolio manager Reid Drescher uses such vehicles as PIPEs, convertible debentures, bridge loans, pre-IPO and reverse merger opportunities, as well as long equity positions to enter the market. A former senior portfolio manager with Prudential Securities and PaineWebber Inc, 12 years ago he founded broker/dealer Spencer Clarke, a firm which he continues to oversee.
In his expectations for 2009, Drescher says the best deal structures will be market driven with the current focus being o...................... To view our full article Click here
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