Magellan Capital, a multi strategy hedge fund that is based in Dubai, seems to be moving ahead with its planned $700 million launch in the first quarter of 2024, even after the exit of portfolio manager Britney Lam. The launch will indeed be one of the largest in the history of hedge fund debuts in the United Arab Emirates, further proving how Dubai is becoming an attractive base for the sector.
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Veteran money manager Britney Lam has worked for more than two decades, and she has been part of Magellan Capital since May. She has, however, left the firm since October. A person with knowledge of the matter and who wished to remain anonymous because the details are private says she has left Dubai. Britney Lam did not comment on her departure.
Magellan Capital said that her replacement will begin in January and that the firm is on track for a first-quarter launch. The hedge fund will launch with at least three portfolio managers, according to the representative.
“Magellan has brought on several portfolio managers since the summer,” the firm said. Today, it has more than 15 investment professionals across public and private markets. The team is led by Ahmed Omar.
The planned size of the hedge fund is significant on a global scale. According to industry tracker Preqin, only 5% of hedge funds launched globally in 2023 started with $500 million or more, making Magellan’s debut particularly significant.
Britney Lam, who was previously based in Singapore with Ovata Capital, specializes in inter-sector pairs trading. The strategy is based on opportunities within a universe of around 200 tech and consumer companies, including their suppliers, both in the US and Asia. She had revealed in an interview earlier this year that equity and credit investments would be part of the strategies by Magellan. These approaches include taking long positions in specific companies while shorting competitors or identifying arbitrage opportunities between producers and their suppliers.
The seed capital for the fund comes from Hassan El Ali, founder of Zakher Marine International. Two years ago, El Ali sold the business to a unit of UAE state-energy firm Adnoc, raising $1.1 billion for investment purposes. In June, Ahmed Omar said Magellan would put part of its capital into Danish Ship Finance, agreeing a deal worth more than €700 million ($735 million).
Magellan Capital’s launch is widely viewed as a boost to Dubai’s growing reputation as a financial center for alternative investments. With significant capital backing and a roster of experienced investment professionals, the hedge fund is poised to make a major mark on the UAE’s investment landscape.
