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Sports Betting Hedge Fund launched

You may have thought that all hedge fund strategies had been tried and, well, found perhaps somewhat wanting during the Great Recession.  However, you would have been underestimating the ingenuity of those wizards of Wall Street and The City who are always dreaming up new ways to separate you and your money.  This time, they have come up with a hedge fund that will invest in sports betting.  Not invest in casinos, online or offline, mind you where the value proposition is rather easy to determine.  Oh no, not for the boys at Centaur Investments have a "ten year track record of impressive and consistent performance in sports trading," which is good because they are charging investors a rather high management fee of 3% of assets and a very high performance fee of 30% of profits.  For that money, they better be a whole lot better than the folks setting the lines.

Sports seems to the latest trend in hedge funds.  A soccer fund was recently launched with a whole market focus.  The raise was a rather small $40 million, which in today's market won't make a dent in a good Championship club.  The fund doesn't restrict its investment to clubs, however, giving itself the mandate to invest in players, academies, franchises, brands or just about anything else related to soccer that might make money other than betting on the outcome of a game.  For that, there is the Centaur sponsored Galileo Fund.

Full post as published by Sports Biz on April 05, 2010 (boomark / email).