A low profile Dublin-based hedge fund investment management firm headed by a former AIB executive has just launched a $40 million Malta-domiciled macro fund, adding to the $1 billion the company already has under management.
Founded by Tony Gannon in 2000, Abbey Capital's other major shareholder is British-based businessman Tim Brosnan.
Mr Brosnan was the founder of Gandon Securities, which was one of the first European managed futures investment operations and also the first company to receive an IFSC trading licence. Mr Gannon also worked for Gandon until 1993, when he left to establish Allied Irish Capital Management.
Mr Brosnan sold Gandon Securities to Woodchester in 1995. Woodchester was subsequently acquired by GE Capital which then sold Gandon Securities to South African group Investec in 2000.
Abbey Capital, which employs 25 people, has proved a financially sound venture for Mr Gannon and Mr Brosnan. In the 12 months to the end of June last year, it clocked up pre-tax profits of €3.75 million, compared to €708,000 the previous year. It has retained profits of almost €4.9 million.
Only a nominal dividend was paid last year and total directors' remuneration climbed marginally to almost €800,000.
Aimed at high net-worth individuals, Abbey's Malta-based macro fund requires a minimum subscription of $125,000. Macro funds typically adopt a "top-down" investment strategy that examines the potential impact of global economic effects to determine how the fund should be allocated.
Abbey's flagship managed futures and foreign exchange product has generated annual returns since 2000 averaging just over 10 per cent.
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