BlackOnyx Launches First Hedge Fund With SMA Ethos

Feb 26 2010 | 12:55pm ET

As many hedge funds open separately-managed account platforms, one managed account firm is going the other way.

BlackOnyx Capital has launched its first hedge fund. The long/short quantitative vehicle debuted on Feb. 1, HedgeFund.net reports.

Firm founder Luigi Ghilardi called the new fund an “all cash no leverage” offering.

New York-based BlackOnyx was founded two years ago, focusing on separate accounts. And as befits a firm with experience dealing with clients who like things their way, BlackOnyx’s new hedge fund is trying to be as flexible as possible.

Take, for instance, its minimum investment requirement: Technically, it’s $1 million. But Ghilardi says he actually take as little as $200,000. BlackOnyx charges a standard 2% management fee, but its performance fee is figured on a sliding scale. The firm will charge no incentive fees up to a 2.5% return. Standard 20% fees kick in above 2.5%. Anything above 8.75%, BlackOnyx gets 30%, and anything above 15% the firm gets a flat 40% cut.

In the early going, it doesn’t seem like the firm has to worry about anything but a 40% take: Ghilardi says the strategy earned 150% last year and is up 20% this year.


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