Thursday, 25 December 2014
Last updated 18 hours ago
Jun 7 2010 | 1:58pm ET
Two Canadian bankers have launched a hedge fund with terms designed to appeal to wary investors.
East Coast Fund Management, the brainchild of John Schumacher and Mike MacBain, will eschew standard hedge fund fees and restrictive redemption policies, the Globe and Mail reports. The Toronto-based firm will charge a variable management fee—starting at nothing for those who invest before July 1, and will only take its 20% cut of profits after it has returned at least 4% per year.
“We think 2 and 20 is ridiculous,” Schumacher, former co-CEO of Scotia Capital, told the newspaper.
East Coast will also feature a permanent high-watermark and a lockup of just six months.
“We don't want to hold anybody’s money for ransom,” MacBain formerly head of debt capital markets at RBC Dominion Securities and president of TD Securities, explained.
MacBain and Schumacher hope to raise C$100 million for the credit fund, which will target returns of between 8% and 12%. So far, that hasn’t proven a problem: In a year of running their own money, the East Coast founders have returned 31%.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.