This performance fee also carries a high-water mark. Existing JANA clients receive a discount to these fee levels. “The layers of fees are coming out,” Lamborn said. The underlying vehicles are held on an investment platform provided by Partners Group, and JANA has segregated accounts with each. Inflows are transported into the vehicles through two feeder funds, for super and non-super flows, which are domiciled in Australia.
The Swiss manager also supplies risk analyses of the vehicles to JANA. “They can make a horizontal slice through all the vehicles at once and look at their holdings. We have exposure to every individual cell,” Lamborn said. This allows JANA to provide daily unit pricing to investors. But this demand for daily liquidity means that hedge fund managers trading in illiquid assets, such as distressed debt, cannot be included in the portfolio.
The underlying managers have been “ring-fenced” within the product, Lamborn said, meaning that the TriplePoint team’s research on them is not available to the absolute return researchers with JANA’s traditional consulting business. Michael O’Dea, portfolio manager of TriplePoint, crossed over from his former position as head of absolute return research at JANA to work on the fund.
Prashanthi Nadarajah also works on the TriplePoint team. The name of the fund was drawn from the study of physics: the triple-point defines the particular temperature and air pressure at which the solid, liquid and gaseous phases of a given substance, such as water, are at equilibrium with each other.