New Hedge Fund Will Target Physical Assets

by Carla Johnson, Investors Offshore, New York

07 June 2002

New York-based Framework Investment Group (FIG) yesterday announced announce the formation of a new offshore hedge fund focused on investment strategies in physical assets and related markets. FIG says the fund will seek to earn substantial net returns by taking advantage of the unusual inefficiencies in this niche through arbitrage, relative value and directional strategies.

Framework says it has a unique ability to participate in these markets because it is experienced in receiving, managing and delivering inventories of assets including metals, industrial assets, livestock, energy products, grains and agricultural items as well as the derivatives thereon, and is supported by the experience and depth of its expanding staff (currently 25 people) led by CEO Andrew Gitlin (founder and former President of AIG International Asset Management), cutting edge technology, and a long history of achieving favourable results in this sector.

The principals of Framework say that they bring a proven track record of delivering excellent risk adjusted returns. Simon Glover and Joe Kleinman, as principals of Framework Advisors, have delivered average annualized net returns of 17% over the past five years in this investment niche, currently managing over $400 million. Of particular interest, says Framework, is that the expected return profile of this fund should deliver results that are not correlated to most other hedge fund styles, potentially providing investors with sound diversification benefits.

The Fund is expected to launch with qualified non-US investors on July 1st, 2002. FIG says that pre-marketing for this investment has been well received and it is expected that future capacity may be reserved for early investors. Framework will be providing a web-based video presentation to discuss the new fund in greater detail.

Framework Investment Group is a New York based alternative investment management firm focused on the incubation and acceleration of hedge funds. Past performance is not necessarily indicative of future results. This material does not contain all of the information necessary to evaluate this investment. This is neither a recommendation to buy, an offer to sell, nor a solicitation of an offer to buy or sell. An offer can only be made by confidential offering circulars, which will only be offered to qualified offerees.

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