Hedge It Like Beckham
| Feb 12th, 2007 | Filed under: Hedge Fund Industry Trends | By: Alpha Male |
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Think you’ve heard of all asset classes? Timberland, airports, highways? Yeah? How about equity in football players?
Romek Pawlowciz’s firm Orthogonal Partners specializes in finding unusual and innovative hedge fund managers. By introducing new forms of risk to capital markets, he completes markets by providing investors with very specific risk premiums that were hitherto embedded within larger more complex securities. And this strategy certainly falls into the “unusual” category.
While professional football (a.k.a. soccer) teams can often raise money backed by their physical assets (e.g. a stadium) or can issue equity on the strength of their income stream, they can’t raise capital specifically dedicated to signing a new player.
Until now, that is. Pawlowicz has been working with a hedge fund manager who specializes in providing capital to football teams in order to buy promising players at the beginning of their careers (17-23 years old).
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