Zurich-based credit and private equity firm Palomar Capital Advisors last week launched a structured credit fund-of-funds. Palomar Structured Credit Strategies invests in 10 hedge funds focused on products including asset-backed securities, collateralized debt obligations and mortgage-backed securities. The firm plans to invest in a further five hedge funds within the next six months and will meet with several in the next few weeks, said George Tintor, managing director.
The fund-of-funds has launched with $40 million from a single Switzerland-based institutional investor, continued Tintor, declining to name the client. The firm is starting to market the fund this month and Tintor anticipated that it could hit capacity limits at $200-300 million, possibly within the next 12 months.