Zahra Group Reports Biggest Gulf Hedge Fund Launch for Five YearsZahra Group, a Kuwait based private shareholding company, is launching a new $100 million global equities hedge fund targeting ethical investments, the biggest Gulf launch for five years.
The fund will invest using the principles of Islamic law, although trades will not be signed off by a cleric.
"The few (Sharia compliant) funds that exist are mostly real-estate focused and returns are usually in single digits ... When investors see the prospect of double-digit returns, their eyes light up," Husain Kothari said.
Kothari said he hoped his fund, Kothari Investment Partners, would appeal to a broader investment base, including ethical investors in Europe.
"They (ethical investors in the region) feel that they leave a lot of money on the table, as there just aren't avenues available to invest," he added.
Kothari, ex-chief financial officer of Kuwait Energy, said the fund was talking to wealthy regional individuals and family offices, and was likely to pass an original target of $50 million and hit $100 million ahead of a summer launch.
While global hedge fund assets are around $3 trillion, those based in the Middle East manage just $5 billion, data from Eurekahedge showed.Source: Reuters