WEST PALM BEACH, FL (www.hedgeco.net) – Richard Breeden, the former Securities and Exchange Commission Chairman, is reportedly preparing to launch a new hedge fund. According to the New York Times story, Breeden who has been an advocate for corporate governance will be establishing a new hedge fund to be called Breeden Partners. The new strategy will try to capitalize on the improved corporate governance issues. Breeden Partners will try to take advantage of such situation by trading the stocks of such selected companies.
The new fund according to the report will begin trading on January 1, 2006, and hopes to raise between $500 million and $1 billion from investors. The fund will hold large positions in companies with good corporate governance. According to the New York Times, Breeden’s fund will invest in 6 to 12 investment instruments at a time.
The minimum investment requirement has been established at $5 million, and the fund carries an initial lock up period of 2 years, after which investors may redeem funds annually. Breeden has extensive knowledge and experience working with companies in distress, and corporate accountability problems. He oversaw the settlement of KPMG accounting company fined $456 million by Federal regulators.
The new fund carries a 2 percent management fee and additional 20 percent for performance fee. Arthur Levitt, a former S.E.C. Director told New York Times, “Richard is a multifaceted kind of guy. He can probably do anything he sets his mind to.†Some market participants were however surprised at his entry into the hedge fund management arena. No further details have been released about the new fund.
Paul Oranika
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net
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