Stockholm (HedgeNordic) – Brummer & Partners is well on track to onboard two fundamental market-neutral long/short equity sector specialists based out of London: Kersley Street Capital and Pantechnicon Advisors. Kersley Street Capital will launch a financials-focused fund at the beginning of September and industrials-oriented Pantechnicon Advisors plans to launch its fund at the beginning of October, with both funds set to join Brummer Multi-Strategy’s portfolio of funds.
Kersley Street Capital, co-founded by CIO Martin Deurell and Gary Lee, is launching European-focused Kersley Financial Fund. The fund takes long and short positions in the financials space and aims to generate uncorrelated returns by maintaining an investment horizon of about 6-18 months. Martin Deurell and Gary Lee worked together at London-based Abaco Asset Management. Deurell was a co-founder of the asset manager and spent 19 years at the firm as a portfolio manager, while Gary Lee joined the London-based asset manager in 2017. Deurell was a founding partner of Abaco Financials Fund, where he worked together with Lee, who has an insurance background.
“We have seen the peak of regulatory interference in the sector and believe that it will develop quickly. A number of disruptive companies will grow, which increases the chances of generating alpha,” says Martin Deurell. “We are excited to be a part of Brummer & Partners and are inspired by our common objective to generate strong risk-adjusted return through alpha.”
“We are excited to be a part of Brummer & Partners and are inspired by our common objective to generate strong risk-adjusted return through alpha.”
Pantechnicon Advisors was co-founded by Daniel Johansson and Gustaf Lindskog, with their soon-to-be-launched Pantechnicon Fund operating as a market-neutral long/short equity fund within the global industrials space. Lindskog spent seven years as an asset manager at Man Group and worked three years at Soros Fund Management. Johansson has experience from Zenit, the first hedge fund in Sweden and the first fund in the Brummer & Partners family of funds. The duo will deploy a fundamental process, examining the repercussions of thematic developments on the global value chains within traditional cyclical industries with a forecast horizon of 1-3 years.
“As the Covid pandemic has increased the speed of trends at sector levels, we see strong potential for Kersley and Pantechnicon.”
“As the Covid pandemic has increased the speed of trends at sector levels, we see strong potential for Kersley and Pantechnicon,” comments Patrik Brummer (pictured), Chairman of Brummer & Partners and Portfolio Manager of Brummer Multi-Strategy. “Both of the teams have long experience and a competitive edge within their respective sector, hence the potential to deliver strong risk-adjusted returns and diversification to our portfolio.”
Brummer Multi-Strategy, the multi-strategy vehicle and model that has been at the heart of the asset manager’s business since 2002, will invest about $250 million in Kersley Financials Fund at launch on September 1. Pantechnicon Fund is planned to launch on October 1 and will receive a similar allocation from Brummer Multi-Strategy. The multi-strategy fund reached its second-best annual performance on record in 2020 after returning 12.6 percent for the year, with the fund down 1.3 percent year-to-date through mid-August.