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SkyBridge Makes Bet On Young Hedge Fund Outpost
Hedge funds are increasingly directing capital towards global macro strategies.
August 21, 2008
Hedge fund investor SkyBridge Capital, which has about $1.8 billion under management in aggregate, is betting on global macro hedge fund Outpost Investment Group by investing as a limited partner. Although the value of the deal was not disclosed, SkyBridge’s average investment size is between $25 million to $50 million, and according to a source close to both companies this particular investment falls in the higher end of the range. It also represents the debut investment for SkyBridge’s new fund, which is dubbed SkyBridge Capital II.
Hedge fund managers, after getting burned last month with their long/short equity strategy used commonly in commodity and financials trading, are increasingly directing capital into global macro funds in search of alpha, sources say.
Scott Prince, SkyBridge Capital managing partner, says of Outpost, “They stand apart from other global macro managers we’ve evaluated, differentiated by their strong pedigree and approach to risk management, and we look forward to a long-lasting relationship with them.”
Outpost CEO Peter Forlenza, said in a statement, “SkyBridge Capital is one of the leading strategic investors in new hedge fund managers and the ideal partner for Outpost as we move forward.”
Outposts’ founders and veteran management team, including Forlenza, former head of global equities business at Bank of America, Jason Bajaj, formerly a managing director in the equities division at Goldman Sachs, and Allen Arakal, another Goldman alum who traded various interest rate products, has been navigating the firm’s Global Macro Fund through the challenging market environment. In doing so, they have been applying a host of different hedge fund strategies, including fixed income, currency, equity and commodity-investment trading.
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