Alternative asset manager Signal Capital Management is selling a 5% equity interest in the firm for $1.5 million to private investors. The move comes as the Los Angeles-based firm nears the launch of several new fund offerings, and gears up for the full-scale launch of its quantitative trading system.
The firm is aiming to complete the sale by early March, and will use funds raised to finance general working capital needs and cover the cost of preparing and launching several hedge fund products, as well as creating an aggressive marketing campaign.
Signal will launch its Signal Special Opportunities Fund, an equities-oriented multi-strategy hedge fund with some $20 million in seed capital, within the next two months, according to founder Shane Rodgers. The fund will make private investments in public equities.
The firm is also readying its energy futures fund, which has been on hold for a few months while the portfolio was restructured to include more managers, according to Rodgers, who said he is interviewing several portfolio managers and analysts for the energy offering. However, former MotherRock and Amaranth energy traders need not apply.
“We got an e-mail from somebody at MotherRock but we said ‘No thanks,’” said Rodgers. “We’d say no to Amaranth, too, not because of the quality of the people who might approach us but simply because of the stigma attached to the firm. That’s just not something we want to be tarnished with.”
Signal, which is also bringing on board a new COO and CFO to strengthen its operations, is about to hire two outside third-party marketing firms to market its products.
Rodgers has a goal of achieving $7 billion in assets under management within five years, with most of that dedicated to the firm’s quantitative business unit, and then possibly moving to a public listing.