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Platinum Capital Launches Offshore Fund

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LONDON ( Capital Management Ltd. launched the Platinum Washington Fund Ltd., an offshore long/short U.S. equity fund.

The fund was launched Sept. 2 with seed money of US$2 million and expected commitments of US$20 million to US$30 million, said Craig Reeves, managing director for Platinum. Demand has been strong, based on the investment success of a U.S. onshore fund managed by the same adviser, Washington Asset Management, Washington.

That fund is reporting strong double-digit returns for the first seven months of the year, according to Platinum, spurring interest in the offshore version. The offshore fund will be sold directly with a minimum of US$150,000 or 150,000 euro and through Platinum’s recently launched Platinum Wealth Management Bond with a minimum of US$25,000 or 25,000 euro.

Washington Asset will use the same approach it uses for its onshore fund, Mr. Reeves said. That means taking long and short U.S. equity positions in large capitalization and midcap stocks, using no leverage, commodities or derivatives, he said. Unlike some other managers, though, Washington will make sector-related trades and take positions on expectations about where the market is headed, he said. The offshore fund has a targeted return of 20% per year, according to a Platinum statement.

The Platinum Washington fund charges 2.5% annual management fee and a 25% performance fee with a high-water mark.