Friday, 25 July 2014
Last updated 16 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…