Schumacher, MacBain Start Low-Cost Hedge Fund in Toronto |
Date: Tuesday, June 8, 2010
Author: Bloomberg
Two of Canada’s bond market veterans are seeking to raise C$100 million ($94.4 million) for a hedge fund that will invest in debt securities while keeping fees below industry benchmarks, the Globe and Mail reported.
John Schumacher, former co-chief of Scotia Capital, and Mike MacBain, former head of debt capital markets at RBC Dominion Securities, plan to generate returns of 8 percent to 12 percent at Toronto-based East Coast Fund Management Inc., the newspaper said today.
The fund’s fees will remain under the industry standard of 2 percent, and a performance fee of 20 percent of any upside will kick in only after the fund has returned at least 4 percent, the Globe said.
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