Predacity Completes First Stage of Fundraising for the Predacity Emerging Markets High Yield Bond Fund

TORTOLA, British Virgin Islands, April 30, 2014 /PRNewswire/ -- Predacity Capital Management Ltd ("Predacity") announces the launch of trading and successful first stage capital raise of USD 6.2 million for the Predacity Emerging Markets High Yield Bond Fund Ltd (the "Fund").

The Fund, which has a Professional Fund license from the British Virgin Islands' Financial Services Commission, is an actively managed fund targeting superior risk adjusted total returns comprised of income and capital growth within the new and inefficient Emerging Markets high yield corporate debt sub-asset class. The Fund's mandate is to invest in USD denominated, low duration, non-investment grade debt securities issued by corporate entities that are domiciled in, or economically tied to, emerging market countries.

Ayed Al Sabawi, Predacity's Founder, President and Chief Investment Officer, believes "the fund will generate an average gross total return of 8-9% per year." Mr. Al Sabawi explains that "the Fund, which will be capped at USD 40 million in assets under management, can achieve the highest yields available in the market today since the Fund is targeting an inefficient sub-asset class that larger asset managers typically can't invest in due to bond offering size, liquidity, and credit rating constraints."  Mr. Al Sabawi believes that the Fund is "suitable for insurance companies, pension funds, and high net worth individuals seeking to allocate a portion of their portfolio to higher returns while minimizing duration."  According to the private placement memorandum, the Fund will be managed using a bottom up valuation methodology and has strict diversification requirements. Mr. Al Sabawi further explains that "the Fund will include at least 20-30 investments by the time assets under management reach a critical scale and will achieve diversification by imposing regional, country, industry and security allocation limits."

Mr. Al Sabawi, who generated a return of 28% over 2.5 years using the same strategy prior to establishing the Fund, expects that "the second capital raise, which will take place in Q3 2014, will be as quick and successful as the first capital raise given the Fund's high yield generation compared to current low yields in the market today."  Mr. Al Sabawi is a dedicated emerging market debt investment manager with 6 years of global investment banking and asset management experience.  Mr. Al Sabawi is a holder of both the Chartered Investment Manager and the Chartered Financial Analyst designations and served 3 years as an oil and gas mergers and acquisitions analyst at Lehman Brothers and Barclays Capital in Canada and the United Kingdom.

Mr. Al Sabawi founded Predacity with an objective to deliver top-tier hedge fund management services to low asset under management strategies that achieve high returns. The Fund utilizes the services of Equinoxe Alternative Investment Services Limited, a global third-party fund administrator with over USD 15 billion of assets under administration, to handle the Fund's subscriptions, redemptions and monthly NAVs for all investors.  Moreover, the Fund holds its assets through Pershing LLC, a top-tier prime broker and custodian based in New York City and a subsidiary of the Bank of New York Mellon.  The Fund has also signed an agreement with Deloitte (Bermuda) to conduct an audit of the Funds' first year of performance ending on December 31, 2014.  Mr. Al Sabawi says "these top-tier suppliers provide comfort to investors, Predacity, and all stakeholders." Mr. Al Sabawi is a personal investor in the Fund. 

Predacity intends to commence the second stage of its capital raising initiative in Q3 2014.  Predacity is leading the capital raising initiative for the Fund and will continue to raise capital in USD 5.0 million stages.  Predacity's Managing Director and Board Member, Khaled Al Sabawi, an award winning entrepreneur with 8 years of experience managing both private and publicly listed companies in the Middle East and North Africa region, stated that "Predacity is managing one of the only dedicated Emerging Markets high yield corporate bond funds today. Given that this high returning strategy can only handle around USD 40 million of assets under management, we are accepting only a handful of investors on a first come first serve basis within each capital raising stage." The Fund's minimum investment requirement is USD 100,000. 

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PREDACITY CAPITAL MANAGEMENT LTD.

Predacity Capital Management Ltd is a BVI licensed, independent, pure-play hedge fund manager that delivers high returning hedge fund management services. Predacity manages its flagship Predacity Emerging Markets High Yield Bond Fund Ltd, a BVI licensed Professional Fund that applies a deep value and bottom up approach to risk-adjusted return maximization by exploiting capital market inefficiencies.

FOR MORE INFORMATION PLEASE VISIT WWW.PREDACITYCAPITAL.COM, OR CONTACT:
Predacity Capital Management Ltd
R.G. Holdge Plaza, Upper Main Street
Road Town, Tortola, BVI - P.O. Box 3483
INTERESTED INVESTORS SHOULD E-MAIL: [email protected]

DISCLAIMER

Request a prospectus or a summary prospectus, if available, from your financial representative or by contacting Predacity Capital Management Ltd. These prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.

This material is not a prospectus and does not constitute an offer to buy or a solicitation to sell any units of the Fund or any services, by or to anyone in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.  Reference herein to the Fund does not constitute or imply its endorsement by Equinoxe Alternative Investment Services Limited, Pershing LLC or Bank of New York Mellon.  

For additional information on the Fund, a free prospectus should be requested from Predacity Capital Management, R.G. Holdge Plaza, Upper Main Street, Road Town, Tortola, BVI - P.O. Box 3483. This content of this document is approved by Predacity Capital Management in the BVI and it is directed at professional clients and not at retail clients.

In the interests of providing potential investors with information regarding the Predacity Emerging Markets High Yield Bond Fund Ltd., including management's assessment of future returns and certain information contained in this document are forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and the Ontario Securities Commission. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur.

SOURCE Predacity Capital Management Ltd