Global Launches Kuwait's First Small Cap Fund

by Carla Johnson, Investors Offshore.com

30 May 2006

Global Investment House has announced the launch of the Global Small Cap Fund, the first of its kind in Kuwait, which invests in small capitalization companies listed on the Kuwait Stock Exchange (KSE).

The Fund's strategy is to achieve growth by investing no less than 80% of its net assets in Small Cap companies with a capital of 50 million Kuwaiti Dinars or less (US$170,000). The Fund is open-ended with a capital ranging from KD5 - 40 million and is non-sector specific.

According to the conclusions of market studies conducted by Global, historically, small cap companies listed on the KSE have continuously outperformed the market indices and other sectors over the long term.

"Despite all this, small caps often garner little attention from analysts or investors, resulting in a high probability that small cap stocks are undervalued and mispriced, making them an attractive buy for many investors," Global noted in a statement.

Global says that the latest addition to its list of funds is ideal for investors who wish to diversify their portfolio, and gain exposure to the potential growth of small cap stocks in the Kuwaiti market.

The minimum investment in the Global Small Cap Fund is KD3,000 and the annual management fee is 1.5% per annum. A 20% performance fee is charged on returns exceeding 10% annually.

Currently, Global manages more than 25 investment funds with various strategies. Recently, Eurekahedge ranked the Global Distressed Fund "3rd Best Hedge Fund in the World" while Barclay Group ranked it "7th Best Hedge Fund in the World", both according to Sharpe Ratio.

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