Our marketable alternative asset management segment will be established in 2013, it will comprise our management of funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and publicly-traded closed-end mutual funds. 

Funds of hedge funds

We plan a variety of funds of hedge funds, which are investment funds that invest in third-party hedge funds. Our funds of hedge funds will be designed as risk-mitigation products that are generally expected to have relatively low volatility and limited correlation with the markets. The funds of hedge funds that we will manage comprise a wide range of different portfolios and investment strategies, including broadly diversified funds, strategy focused funds, opportunistic funds and client customized funds. 

Mezzanine funds

We plan funds that invest primarily in the mezzanine debt of middle- market companies arranged through privately negotiated transactions. These investments will generally be structured to earn current income through interest payments and may also include return enhancements including warrants or other equity-linked securities.

Senior debt vehicles

We plan for vehicles that invest primarily in senior secured loans and other debt instruments. These vehicles are of the type commonly referred to as collaterized debt obligation or collaterized loan obligation funds.

Proprietary hedge funds

We plan two proprietary hedge funds:

  • Distressed securities hedge fund. Our distressed securities hedge fund will invest primarily in distressed and defaulted debt securities and related equities, with an emphasis on smaller, less efficiently traded issues.
  • Equity hedge fund. Our equity hedge fund will invest primarily in equity investments on a long and short term basis. 

Closed-end mutual funds

We plan to be investment manager of two publicly-traded closed-end mutual funds (the India Fund I, Inc. and the Asia Fund I, Inc.).
  • The India Fund's investment objective is long-term capital appreciation through investing primarily in the equity securities of Indian companies. The Indian Fund may be the larger of the two closed-end mutual funds we will offer in the United States.
  • The Asia Fund's investment objective will be long-term capital appreciation through investing primarily in the equity securities of Asian companies.