How Diogenes Met Criteria of Major Investment Houses

Diogenes Investment Ltd. – the tanker investment fund managed as a joint venture between Marsoft and Lehman Brothers – describes itself as an “investor driven” fund. Marine Money talked with some of the people behind the fund to learn more about what that meant.

According to Dr. Paul Eckbo, one of Diogenes’ managing directors, the Diogenes concept grew out of extensive discussions with the fund’s major investors. The investors felt that the stage was set for an attractive tanker market investment play, but that there was no existing vehicle for putting funds into the market in a disciplined and risk-controlled fashion. They wanted an investment approach that addressed several priorities:

• Take advantage of a cyclical play in the tanker market and, in that context, allocate its assets across the major segments of the fleet to diversify the fund’s exposure;

• Clear and explicit investor exit strategies in place before investments are undertaken and no operating role for the fund that could compromise its exit decision;

• OPA-related risk – to the greatest possible extent – eliminated;

This is only an excerpt of How Diogenes Met Criteria of Major Investment Houses

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