New York-based Midsummer Capital has launched a new fund employing the more liquid strategies of its flagship.
Midsummer Small-Cap is designed to appeal to investors "looking for liquid investments" following the financial crisis, Midsummer founder Michel Ansalem said at an emerging managers conference in Texas this month.
The new long/short vehicle debuted on Oct. 1 and features a concentrated core portfolio of 10 to 12 U.S.-listed long positions, each comprising 4% to 7% of the portfolio, HFMWeek reports. It will have a similar number of smaller long bets, each amounting to 2% to 3% of the portfolio, and between 20 and 30 short positions of between 1% and 2% each.
By contrast, the firm's flagship Midsummer Partners Fund also includes illiquid investments, including convertible bonds.
Midsummer is marketing the new vehicle to high-net worth individuals, private banks and family offices. It has a $700 million capacity; the minimum investment is $500,000. The Small-Cap fund charges 2% for management and 20% for performance and features quarterly redemptions with 60 days' notice. Citigroup serves as prime broker.