MPC Investors (MPC) today announced the $900m launch of the MPC Samsara hedge fund. The Fund is managed by Ajay Gambhir who joined MPC Investors at the beginning of May. The fundÃ¢â‚¬â„¢s size will make it one of the largest hedge fund launches in Europe this year.
The MPC Samsara hedge fund follows the same highly successful strategy as the JPMorgan Europe Dynamic Long Short hedge fund of which Ajay was the sole portfolio manager. This hedge fund returned, net of fees, 31.5% in 2005 and 40.2% in 2006 and over the three years to end 2006 the fund returned 104.7% with a sharpe ratio of 3.1. The Fund won the Eurohedge Best European Equities Hedge Fund 2006 award (under $500m) in 2006.
MPC Samsara is a pan-European directional long short equity strategy. The strategyÃ¢â‚¬â„¢s flexibility ensures that it can profit even in poor stock market environments. It uses bottom-up stock selection as the principal driver for fund returns blended with an element of top down overlay.
AjayÃ¢â‚¬â„¢s investment philosophy is based around three principles; clinical fundamental analysis, the belief that human biases distort rational behaviour and that valuation forms the cornerstone to every investment. The strategy applies creative idea generation with a highly objective approach to the application of the philosophical beliefs.
Ajay was previously Managing Director and Head of the European High Alpha Team at JPMorgan Asset Management, running over $8bn of assets. Ajay himself personally managed $6bn of assets all of which was in either absolute return or unconstrained vehicles.
Commenting on the fund launch, Peter Harrison, Chief Executive at MPC Investors, said:
Ã¢â‚¬Å“The launch of this fund demonstrates how our business has developed in the last 18 months. Alongside John Innes and Miles Geldard, the launch of AjayÃ¢â‚¬â„¢s fund means MPC now has three of the industryÃ¢â‚¬â„¢s most exceptional investors running hedge funds.
Ã¢â‚¬Å“Ajay was very successful as the manager of the JPMorgan Europe Dynamic Long Short hedge fund and we are delighted that he is now running a similar fund at MPC. Ajay is an immensely talented fund manager with an exceptional track record and the ability to prevail in both bull and bear market environments.
Ã¢â‚¬Å“The $900m raised was at the top end of our expectations and highlights the confidence investors have in both Ajay and MPC Investors even with the market turbulence of the last couple months.Ã¢â‚¬Â
About the MPC Samsara fund:
- Target return: In excess of 15% per annum
- Leverage: Typical gross exposure of 200-250%
- Currency: Base currency is EUR also have USD / GBP hedged share classes
- Investment Manager: MPC Investors London
- Custodian/Administrator: HSBC
- Prime Brokers: UBS and Deutsche Bank