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Equinox Plans First Offshore Fund

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NEW YORK (–Equinox Management Partners is planning to launch its first offshore hedge fund on Sept. 26.

The new Bermuda-domiciled Equinox Funds International Ltd. is a multi-series vehicle that will allow qualified non-U.S. investors to get exposure to Equinox’s two existing U.S. strategies via a master-feeder structure.

A ‘Series-E’ for the fund will tap the US$17.6 million Equinox Partners LP fund, which trades a long/short portfolio of global equities as well as precious metals and energy markets. The ‘K-Series’ for the Equinox Funds International Ltd. will be linked to the firm’s US$29 million Equinox Kurota Fund, which trades a long/short Asia ex-Japan portfolio.

The minimum investment for the new offshore fund is US$1 million and a fee structure of 1.5% management and 20% incentive. No target has been set in terms of asset raising for Equinox Funds International Ltd.

“We’ve seen more interest from offshore investors. The new fund is a mechanism for allowing them to participate,” said Yui Tsao, an analyst and recent graduate of Williams College who joined the hedge fund firm over the summer.

“The structure won’t affect the existing (U.S.) investors. They can stay where they are,” he said.

“Equinox (Partners) is designed to have a negative beta to the U.S. (equity) market, using leverage and being more aggressive when it comes to risk. It’s short-bias and the precious-metal component has helped this year,” Mr. Tsao said.

Veteran money manager William Strong founded the Manhattan-based firm in 1994. The Equinox Partners LP fund, launched the same year, was successor to Greylock Balanced Fund LP portfolio.