01/06/2010 Author: Tony Griffiths

CQS to be added to Innocap platform

UK credit hedge fund specialist CQS is to join a wave of recent additions to the Innocap platform, HFMWeek can exclusively reveal.  

A bespoke managed account which will employ a convertible arbitrage strategy will be available via the Innocap offering, which is jointly-owned by the BNP Paribas and National Bank of Canada, from 1 June. As with all Innocap funds, the CQS managed account will be domiciled in Malta, a member of the EU.  

“BNP surveyed multiple convertible managers and chose CQS due to its long term track record and experience,” said Soobong Han, Innocap’s representative in London. “Convertible strategies performed very well in 2009 and we believe they will continue to do so this year. A lot of managed account providers struggle to achieve a good presence in the relative value space, be that convertible strategies, so this is a particularly important step for us, especially with a name like CQS.”

Innocap continues its aggressive push to expand its offering. The CQS managed account is one of nine new funds to be added to the Innocap platform since the start of the year.

With increasing demand in emerging market managers, Duet Mena Opportunities Fund is the first Middle East and African focused market fund available in managed account format. The fund has been seeded in May by a large sovereign wealth fund from the region.

Other recent additions at Innocap include: Long/short equity fund Iridian in June; convertible fund, Advent Capital and equity long/short fund Homefield in May; and equity market neutral offering AlphaSquare/Finaltis SA in April.

Severn River, Alphatan and KSAM Asia – seeded by a large Middle Eastern pension plan – round off the rest of Innocap’s additions for 2010.

Innocap placed seventh in HFMWeek’s March list of the world’s largest managed accounts platforms, with $2bn in AuM. Lyxor Asset Management headed the rankings with $10.5bn, followed by Deutsche Bank on $8bn and Man Group on $7.3bn.