Bennelong Funds Management Ltd. has hired Tara Bell as a client relationship manager for its five fund management companies which manage about $2 billion.
Bell was as an associate director at Standard & Poor’s Fund Services.
Mark Burgess, portfolio manager at Bennelong’s second hedge fund, Kardinia Capital, says Bell will help the fund boost its funds management from the current $17 million.
Burgess says two institutional investors are in “advanced stages of due diligence” in deciding whether to invest money with Kardinia.
Kardinia’s annual return since its inception five years ago is 15 per cent, including 0.3 per cent in 2008. Burgess says the fund has the capacity to manage $500 million.
“Big industry funds are fixated on fees,” he says. Kardinia charges a 1.5 per cent management fee plus a 20 per cent performance fee. Its hurdle rate is the Reserve Bank of Australia’s cash rate.