Friday, 29 May 2015
Last updated 8 hours ago
Feb 15 2007 | 12:54pm ET
Eric Reiter, a former equity analyst for long/short value shop Springhouse Capital, has launched Lilburn Capital, an equity value long/short offering.
Lilburn focuses on securities trading at a large discount to intrinsic value. “Right now, I’m managing a small pool of capital, so I have the luxury of investing in smaller, under-followed names that larger funds can’t possibly look at,” Reiter says. “These names tend to lack institutional coverage and, as a result, often present huge valuation inefficiencies that I can exploit.” Reiter believes that he can manage up to $250 million without having to adjust the strategy.
The fund maintains a concentrated portfolio focusing on “fewer but better ideas,” Reiter says. Currently, it has six positions, one a short. Reiter intends to maintain a long-bias and will invest in a maximum of 10 to 15 positions. The fund's largest holding will likely not exceed 20% of the portfolio.
Lilburn Capital charges 1% for management and 20% for performance, with a $100,000 minimum investment requirement.
Reiter has also worked as an investment banker at Donaldson Lufkin & Jenrette and as an associate for small-cap buyout shop, Generation Partners, as well as an associate in Capital Z's fund of funds group.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…