London-based hedge fund firm Algebris Investments is preparing to launch a long-only fund that will invest in global financial stocks and bonds.
Financial Times reported that investors have already committed $100 million in the new fund, which will open in August with a formal launch in September. It will target investments in high-yielding financial bonds or financial equities with high dividend yields.
Most investors will be charged .9% annual in fees, which is an industry low.
Algebris founding partner and portfolio manager Davide Serra told the Times that “it’s a great time to invest in [financials]” as “financials are going to be the key beneficiaries of rising rates in the next three to five years.”
Founded in 2006, Algebris is partly-funded by The Children’s Investment Fund.