Access to Islamic Hedge Funds - Incisive Media

access to islamic hedge funds
Contents
Editor
Margie Lindsay
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Kris Devasabai
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Amanda Allen
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Matthew Crabbe
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All reports written by
Margie Lindsay
Information on hedge fund managers
in Hedge Funds Review is based
solely on information supplied by
those managers. The accuracy has
not been verified by Hedge Funds
Review. We take no responsibility for
it. No information in this magazine
should be taken as a solicitation
for investment in any of the
investments reported on.
© 2008 Incisive Media Group
4–5 Introduction to Shariah
The tremendous growth of Islamic finance has generated innovative investment products. As the
Islamic marketplace grows in sophistication, investors are beginning to expect more than the
traditional returns offered by real estate and commodity funds. Hedge funds could be the answer.
6–7 Challenges to setting up
Running a Shariah hedge fund is a daunting task. Many issues, particularly ensuring the underlying
stocks traded are all compliant, has scuppered attempts in the past. The Al Safi platform thinks it may
have the answers that will be able to provide ethical Islamic investors with an acceptable product.
8–9 Al Safi Trust Platform
Scepticism among some Islamic scholars about how to make hedge funds mainstream in the Islamic
investment community has challenged attempts to set up Shariah compliant funds. The question now
is whether the Al Safi Trust Platform has addressed those concerns and found a workable solution.
10–12 Success of Al Safi
Islamic scholars have long disagreed about the merits of hedge fund investments. Nevertheless
ethical Islamic investors are keen to tap into the high returns offered by hedge funds. One of
the main stumbling blocks has been shorting. The short arboon sale may be an acceptable
alternative to both scholars and investors.
13–14 DMCC profile
A strategic initiative of the Dubai government created the Dubai Multi Commodities Centre. Now
DMCC is playing an active role in seeding the first five hedge funds on the Al Safi Trust Platform.
15 Access to Al Safi for investors
There is growing demand in the Middle East for access to Shariah compliant alternative
investments like hedge funds.
16 Access to Al Safi for hedge funds
Hedge fund managers are keen to tap into Middle Eastern investors, particularly as sources of new cash
is squeezed by the financial downturn. Putting a fund on the Al Safi platform could be a solution.
17 Why hedge funds?
While hedge funds were originally attractive only to high net worth individuals and family offices,
institutional investors are now eager to take advantage of the higher returns largely uncorrelated
to markets offered by these alternative investments.
18–19 Fund profile: DSAM Kauthar Gold Fund (Tocqueville Asset
Management
20–21 Fund profile: DSAM Kauthar Energy Fund (Lucas Capital Management)
22–23 Fund profile: DSAM Kauthar Natural Resources Fund (Zweig-DiMenna
International Managers)
24–25 Fund profile: Peconic Partners
26–27 Strategy profile: EnTrust Capital
28–29 Fund profile: Van Eck Hard Assets 2x Fund (Van Eck Global)
30–32 Fund profile: Caduceus Capital (OrbiMed Advisers)
33–34 Strategy profile: Alkeon Capital Management
35 Contact details for the Al Safi Trust Platform
Cover picture: Alhambra, the palace and fortress complex of the Moorish monarchs of Granada in southern Spain, is a
reflection of the culture of the last days of the Nasrid emirate of Granada. It is a place where artists and intellectuals took
refuge. Alhambra mixes natural elements with manmade ones and is a testament to the skill of Muslim craftsmen of that
time. The literal translation, ‘red fortress’, derives from the colour of the red clay of the surroundings of which the fort is made.
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November 2008 | Access to Islamic Hedge Funds Supplement |