‘Hot Pockets’ Family Office Launches Consumer Hedge Fund

Feb 2 2010 | 8:59am ET

The inventors of the Hot Pockets know a thing or two about consumerism. And they’re set to offer that expertise to investors in the form of a long/short equity hedge fund.

Falcon Investment Management has launched the Falcon Consumer Fund, Alternative Investment News reports. It is the first strategy that Falcon, the hedge fund arm of the Merage family office, will open to outside investors. Paul and David Merage founded Chef America, the makers of the Hot Pockets.

The new fund, which is managed by Paul’s son Richard, launched on Jan. 1 with $119 million from the Merage family office. But Richard Merage has been running the strategy since late 2007, earning about 20% last year after dropping 3% in 2008.

“What they’ve found over the last couple of years is they had a specific expertise in the consumer space, given the family’s background, network, research process and knowledge,” Christopher Ainsworth, chief operating officer, told the newsletter.

The Consumer fund will invest in about 60 consumer names across all market capitalizations, evenly split between longs and shorts. The fund focuses primarily on U.S. companies.

Falcon runs two other hedge funds, a $230 million fund of funds and a $105 million quantitative fund. Neither of those funds are open to outside investors.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.