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Reservoir, Saba Said to Give Seed Funding to Cornut Fund Camares

Feb. 8 (Bloomberg) -- Reservoir Capital Group LLC and Saba Capital Management LP plan to back Antoine Cornut’s hedge fund in its debut next month, according to three people with knowledge of the matter.

Camares Capital LLP will start March 1 with $100 million to $200 million, said the people, who asked not to be identified as the matter isn’t public. It will have a staff of about 10 people, two people said.

Cornut resigned in July from Frankfurt-based Deutsche Bank AG, where he led flow-credit trading in the Americas and Europe. Askin Aziz and Julien Marie, both former Deutsche Bank employees, join Cornut at Camares Capital as partners.

Cornut declined to comment. The investments were reported earlier today by Financial News.

Seeders generally invest $100 million to $150 million in a hedge fund, providing a pool of capital to help the manager begin trading. In return, the seeding fund gets 15 percent to 25 percent of the fees. Hedge-fund managers typically charge clients 2 percent of assets and take 20 percent of investment gains.

The seed money is often locked up in the hedge fund for three years, and seeders return initial capital to their investors after about five years. Seeding funds retain their ownership stake until it’s bought out by the manager or a third party.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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