Dubai-based Magellen Capital Holdings LTD. is launching a $700 million multi-strategy hedge fund next month, further cementing the city’s status as a global hub.
The fund will run equity and credit strategies, according to Britney Lam, head of long-short equities for the firm.
According to industry tracker Preqin the size of Magellan’s is notable, given just 5% of hedge funds globally launched with $500 million or more this year.
The major part of its seed capital comes from the family wealth of Hassan El Ali, who founded Zakher Marine International and sold it to a unit of UAE state-energy firm Abu Dhabi National Oil Co. two years ago.
This launch will further strengthen Dubai’s reputation as a hub for hedge funds. The city currently hosts local offices of 37 global hedge funds that oversee at least $1 billion, of which 25 were set up after 2022, according to data provider With Intelligence.
Magellan with its offices in Dubai, Abu Dhabi and London, has doubled headcount in the past year to more than 20 staff across its public and private markets operations. Â Valery Kazak, who previously worked at Sova Capital in London and will oversee emerging markets fixed income, is one of the major hires according to Lam.
The Zakher Marine sale provided $1.1 billion for Magellan to invest, its Chief Investment Officer Ahmed Omar said in June when the firm agreed to pay more than €700 million for Danish Ship Finance. Magellan raised $360 million the following month in a bond offering to help fund the acquisition.
Peter Lynch ran the Fidelity Magellan Fund for years, while Australian fund manager Magellan Financial Group Ltd. has $25 billion under management.
