Bracebridge Capital, LLC is a large fund manager headquartered in Boston, Massachusetts. The firm has a team of 63 financial professionals who help manage over $37.3 billion in client assets. It also employs several other individuals to help manage the day-to-day operations of the firm. The firm's assets are spread across 13 different pooled investment vehicles, known more commonly as funds. A few of these funds are hedge funds
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Bracebridge Capital Background
Bracebridge was founded by Nancy Zimmerman and Gabriel Sunshine in 1994. In 1996, the entity now officially known as Bracebridge replaced the original founding entity, and the firm has been in business ever since, registering with the U.S. Securities and Exchange Commission (SEC) in 2012. Zimmerman and Sunshine both control Bracebridge Capital II, L.P. and SVZ, L.P. These companies are the principal owners of Bracebridge, and both individuals retain the ultimate managing authority of the firm.
Bracebridge Capital Investment Philosophy
Bracebridge is a manager of absolute return investment funds. When it comes to its investment philosophies, the firm manages each of its funds according to different strategies. These specific strategies are detailed in the governing documents of each fund, so you should review those materials or contact the firm for more information. As a result, the firm doesn't have a single overarching investment philosophy, though there are certain elements that remain constant between funds.
At a high level, Bracebridge Capital's goal is to take advantage of inefficiencies in financial markets around the world. Advisors look to achieve absolute returns for the funds. When it comes to specific investments, the firm focuses on fixed-income securities and derivatives relating to those securities. However, the firm may invest in other things as it sees fit, such as options, futures, forward contracts, swaps, other derivatives and equities.
Largest Hedge Funds Managed by Bracebridge Capital
FFI Fund Ltd
- AUM: $27,293,409,095
- Minimum: $100,000
- Beneficial Owners: 367
FYI Ltd
- AUM: $5,165,326,966
- Minimum: $100,000
- Beneficial Owners: 11
Olifant Fund, Ltd
- AUM: $4,271,163,831
- Minimum: $1,000,000
- Beneficial Owners: 10
FFIP, LP
- AUM: $2,227,705,454
- Minimum: $1,000,000
- Beneficial Owners: 159
SBFF LTD.
- AUM: $1,276,197,447
- Minimum: $5,000,000
- Beneficial Owners: 1
Fees at Bracebridge Capital
Bracebridge Capital charges management fees to its funds based on a percentage of the market value of each fund's assets under management. Funds also incur incentive or performance fees, which are typically higher than management fees and are only taken from a certain amount of gain from each fund.
Management fees at Bracebridge tend to range from 1% to 2%, and incentive fees usually fluctuate from 15% to 25%. Bracebridge doesn't specify any exact fee ranges for its funds. For more information, contact the firm directly or view the government documents related to its funds.
What to Watch Out For
Bracebridge Capital does not have any disclosures listed on its Form ADV.
In order to invest in hedge funds, you must be considered an accredited investor. Accredited investors need to have at least $200,000 of earned income ($300,000 for couples) over both of the past two years. There must also be a reasonable assumption that this income trend will continue in the upcoming year. You can also be considered an accredited investor if your net worth is at least $1 million, after subtracting the value of your primary residence. You can meet this requirement either on your own or together with your spouse.
Becoming a Client of Bracebridge Capital
Remember that only accredited investors can work and invest in hedge funds. If you meet that requirement, go ahead and reach out to the firm for more information. You can also go online to the firm's website and send the firm an email directly.
All information is accurate as of the writing of this article.
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