Brummer & Partners, a Stockholm-based $14 billion hedge fund firm, has raised $500 million for a new fund requiring clients lock up their cash for three years, in a sign some investors are willing to sacrifice liquidity for the chance of better returns. “In recent years, financial markets have become increasingly short term. This creates opportunities if we have a mandate to take long-term decisions based on locked-in capital,” Brummer partner Per Josefsson said in a statement on its website.
Announced by Tommy Wilkes, Reuters, the fund, which will invest in equities, corporate bonds and government bonds, will launch in October, Brummer said. The $500 million includes $130 million from the three managing partners, a person familiar with the fund said.