Toronto-based Friedberg Mercantile Group and Niagara Capital Partners have launched the Niagara Discovery Fund, a fund of CTAs. So far, the fund of funds has invested in one CTA, Tennessee-based Covenant Capital Management.
Michael Grant, president of Niagara Capital, said the vehicle is in the process of adding additional managers to its portfolio, and will carry a maximum of six underlying managers. “We like people without a lot of money under management (under US$50 million) and we would want to see a three-year track record,” he said.
Since launch in November 2006, the roughly US$5 million fund has been relatively flat, according to Grant. Covenant’s Original program, a systematic diversified futures strategy, was down some 6% since November 2006, according to public databases. Its Aggressive Fund has fared better, up about 1.9% since November 2006. Albert Friedberg, founder of Friedberg, is the portfolio manager.
The new offering charges a 2% management fee and 20% performance fee, with a US$100,000 minimum investment requirement. The fund is registered in Ontario, Canada, and is not available to non-Canadian investors. The Discovery fund is the second offering from the Friedberg-Niagara partnership.