Monday, 24 October 2016
Last updated 1 hour ago
Apr 30 2010 | 12:20pm ET
A new firm is aiming to tap into sidelined talent with a new hedge fund seeding platform and best-ideas fund.
New York-based Lion’s Path Capital was set up to incubate long/short hedge funds, and has already seeded 11 with as much as $10 million apiece. The firm is also set to launch its Lion’s Path Capital Partners best-ideas fund this summer.
“We are looking to capitalize on the amount of talent that is exiting prop. trading desks at the big banks as well as attract smart analysts and portfolio managers that are trapped in funds with high water-marks,” Lion’s Path President Tim Harrington told HFMWeek. “We don't look to change portfolio managers’ styles. We focus on trying to make them better risk managers and idea generators.”
The Lion’s Path seeding platform could eventually grow to include 20 managers under a revenue-sharing agreement with the firm. After the seedlings have developed a track record, Lion’s Path plans to add them to its own hedge fund strategy and market them.
The firm has arguably even bigger plans for its best-ideas fund. The vehicle will debut on July 1 with $50 million in primarily partner capital. But the firm hopes to boost its assets to $500 million within three years.
The fund will be run by two of Lion’s Path’s six partners, Storm Boswick and Brett Katzner. Before setting up Lion’s Path, Boswick set up Brompton Cross Capital Advisors, while Katzner worked at two firms currently caught up in the Raj Rajaratnam insider-trading case, Galleon Group and Incremental Capital. Katzner has not been implicated in any wrongdoing at either firm.
In addition to Harrington, the firm’s other founders are Michael Curtiz, Michael Palazzi and Brock Vandervliet.