Sydney-based equities investor Cadence Asset Management has outlined its pitch for a new listed investment company that will seek to profit from market volatility.
Cadence chairman Karl Siegling has told potential investors the new fund would would be more focused on short term price trends with a six to 18-month time horizon, rather than one to six years as would be the case in its $350 million-odd listed fund Cadence Capital Ltd.
Siegling told potential investors he would seek to raise up to $100 million at $1.25 a share, with up to another $100 million set aside for oversubscriptions.
Five brokers – Baillieu, Bell Potter, Morgans, Patersons and Shaw and Partners – have been lined up to help sell the deal. The deal is not underwritten. A $16.5 million minimum was set.
However, Siegling and his team will hope its fund strikes a chord with investors given its tilt at making money from short to medium term volatility. It is understood the raising has been downsized from an earlier planned $250 million offering, to reflect the market mood.
Siegling and the Cadence team will manage the new fund.
Cadence has $418 million under management, according to a prospectus lodged with the corporate regulator, via the listed Cadence Capital and an unlisted trust.
The new fund is expected to be pitched towards the firm’s existing investors, and new investors. Up to 40 per cent of the new fund is reserved for the “priority allocation” which captures shareholders in Cadence Capital and others in the manager’s network.
