New investors gain access to West End fund

West End Capital Management, a hedge fund company in Bermuda that manages about $600 million for billionaire Warren Buffett, plans to open its Value Capital LP fund to new investors in a bid to raise another $500 million.

Mark J. Byrne, the former head of fixed-income arbitrage at Credit Suisse First Boston who is the chief executive of West End, plans to attract pension funds, endowments and wealthy families for cash. Until now, most of the $678 million in the Value Capital fund has come from Mr. Buffett, who is expected to remain an investor for another four years, Mr. Byrne said.

Mr. Buffett gave funds to West End in 1998. During the past five years, hedge fund assets worldwide have increased two-thirds to $622 billion, according to Hedge Fund Research Inc., based in Chicago.

West End "is diversifying its client risk, so that if Buffett leaves they still have investors," said Narayan Naik, the director of hedge fund research at the London Business School.

The Value Capital fund tries to make money from bond arbitrage, or betting on the price difference of related fixed-income securities. It aims for returns that are nine percent more than the London Interbank Offered Rate after management fees, Mr. Byrne said.

Value Capital gained 6.6 percent during the first five months of 2003, according to the company reports.

West End aims to raise $300 million by the end of December, Mr. Byrne said.

Fitch affirms rating on Exporters Insurance

Fitch Ratings has affirmed its 'A' insurer financial strength rating on Exporters Insurance Company Ltd., a Bermuda based group captive insurer that focuses on trade credit insurance. The rating outlook remains negative. Fitch's strong rating on Exporters continues to reflect the company's competitive position in offering a valued insurance product, very knowledgeable and experienced management team and conservative investment portfolio. The negative rating outlook reflects the continuing difficult economic conditions and challenging political environment in several countries in which Exporters has a significant insured exposure, including Mexico, Brazil, Turkey and Argentina, that, while improved, still remain problematic with the potential to adversely impact Exporters' operating profitability and financial position.