Fabien Pictet & Partners, a London-based hedge fund boutique specializing in emerging markets, is introducing a long/short fund dedicated to emerging market debt. The fund, called GEMs Bond Fund, will start trading next month, says Julian Jacobson, portfolio manager. GEMs is the firm's fourth fund, but the first dedicated to emerging market debt. Fabien Pictet & Partners has $200 million under management.
Currently, the firm has a fund that trades emerging market equity and debt, but the new fund is being created to focus on emerging debt and benefit from the excellent returns the asset class has posted over the past four years, says Jacobson. The fund will begin trading with $20 million under management, and Jacobson says the natural limit would be around $150 million. He plans to trade emerging sovereigns, corporates, convertibles, distressed debt and local currency.