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Arden Registers Hedge Funds of Funds

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NEW YORK (–Jon Venetos and Ross Dackow joined Deutsche Bank AG as part of the bank’s DB AbNEW YORK (–Arden Capital Management LLC filed a registered hedge fund of funds with the Securities and Exchange Commission.

A closed-end fund, Arden Registered Institutional Advisers LLC will be set up to employ investment strategies that capitalize on inefficiencies and anomalies in the relative pricing of securities and strategies that involve corporate restructurings, mergers, spinoffs and credit and capital restructurings.

Arden Capital Management will allocate between a number of strategies, including: convertible arbitrage; merger arbitrage, distressed investing; capital structure arbitrage; special situations; fundamental arbitrage and statistical arbitrage. According to the filing, a strict investment policy calls for no more than 15% of assets to be in any one underlying fund in the portfolio.

Henry Davis, a managing director, will be leading the investment team for the fund and directing the fund’s formation. Stefan Zellner, executive director, Clement Wong, chief executive, and Stephen C. Cordy, a managing director, will complete the portfolio management team. Arden Managing Member Averell Mortimer will act as principal of the registered fund.

The fund’s stated investment minimum stands at US$5 million, which is larger than most investment minimums of U.S. registered hedge funds that mainly cater to individual retail investors. Traditionally, Arden has managed absolute return funds for both individual and institutional investors.

In recent years, the firm has sought to broaden its reach among institutional investors. In June 2001, Arden formed a strategic partnership with Phoenix Investment Partners Ltd., Hartford, Conn., to develop and distribute a hedge fund of funds program to Phoenix’s client base. Also, last October, Arden unveiled a customized hedge fund of funds initiative for institutional investors.

A specific launch date was not included in the SEC filing. Officials at Arden were not available for comment.

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