Former Smith Barney, Merrill Broker To Launch Hedge Funds

Mar 29 2007 | 11:55am ET

Rusty Cannon, who spent the last 10 years in the brokerage industry as a portfolio manager and financial advisor for Smith Barney Citigroup and Merrill Lynch, is launching the RKC Matador Fund, an equity long/short vehicle.

According to Cannon, the fund will invest in companies across all market caps, employing the point and figure methodology along with relative strength analysis. “The fund is tactically flexible, meaning it could be anywhere from 150% long to net short, depending on indicators that I watch, so it’s not going to be a static long/short fund,” Cannon says. The new offering will start trading on April 1 with $1 million.

The RKC Matador Fund charges a 1% management fee and 20% performance fee, with a 6% annual hurdle rate and $250,000 minimum investment requirement.

Cannon plans to follow up the long/short fund with the launch in May of the RKC Matador Market Neutral Fund. That offering will have the same strategy as its predecessor fund for picking longs, but will pair its long positions with short positions in the corresponding sector ETF to “try and capture the outperformance of that stock over and above the ETF from the sector,” Cannon says, adding that the goal for the fund will be low volatility and absolute returns.

Cannon, who is currently looking for seed capital for both funds, says that while investors have been receptive to his story, it has been difficult. “I hope to separate myself from the pack as time goes along, however, I’m just another long/short manager and there are thousands of others.”


In Depth

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.