Wednesday, 23 July 2014
Last updated 8 hours ago
May 13 2010 | 3:28am ET
A new event-driven hedge fund is aiming to shine a light on value stocks.
Spotlight Funds Management launched its maiden hedge fund, Catalyst, last month with $5 million. The new long/short vehicle seeks out value stocks “with catalysts at a discount to intrinsic value,” firm co-founder Terry Lally told HFMWeek.
“It is a stockpicker’s market in 2010 which fits our track record of finding neglected companies with catalysts at a discount to intrinsic value,” he said.
The California based-fund was set up by Lally, formerly of Cramer Rosenthal McGlynn, and Stephen Riccio, founder of Buyside Custom Research & Consulting and a former Bear Stearns Asset Management portfolio manager. It also features analysts David Landry and Michael Wright.
The Catalyst fund’s portfolio includes between 20 and 30 core long names and a roughly equal number of small- and mid-cap shorts. The vehicle has a capacity of $500 million.
Catalyst charges 1.5% for management and 20% for performance. There is a $100,000 minimum investment requirement for individual investors and a $1 million minimum for institutions. The fund features monthly liquidity.
Jefferies & Co. is the firm’s prime broker.
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…