After eight months of managing the strategy with partner money, Beaconcrest Capital Management is opening its maiden hedge fund to outside investment.
The Boston-based firm has hired Virginia Dawson, a capital introduction veteran, to back its newly-launched fundraising effort. Dawson has also served as a portfolio manager at Claremont Investment Partners.
“We think investors need options for strategies that are truly uncorrelated to market indices that focus on capital preservation that deliver absolute returns over time,” Beaconcrest founder Kevin Divney told HFMWeek.
So far, the Beaconcrest Partners Fund has lived up to its uncorrelated billing. The fund is down about 2% this year, while the average hedge fund is up about 1%. The Standard & Poor’s 500 is down about 1.5%.
The long/short Beaconcrest fund uses both quantitative and fundamental selection criteria to build its portfolio of between 60 and 100 longs and 90 to 125 shorts. The fund invests primarily in mid- and large-cap stocks.
The fund charges 1.5% for management and 20% for performance. The is a $1 million minimum investment requirement with monthly liquidity and no lock-up period. The prime broker is Merlin Securities.
Divney founded Beaconcrest after more than a decade at Putnam Investments.