Newly-Formed Hagin Offers 130/30 Strategy

Apr 9 2007 | 11:37am ET

Hagin Investment Management is making its debut in the hedge fund space with a 130/30 quantitative strategy on May 2. The fund, Hagin Capital, will launch with less than $10 million, all partner capital.

“We think our competitive advantage comes from our quantitative research, which is based on 20 years of background research by the principals,” said Kathleen DeRose, a partner at the new firm. “Our proprietary research is unlike everyone else’s because of its unique portfolio construction method, which integrates alpha and risks, long/short exposures and positions and weightings all in one simultaneous optimization. So we think we have a competitive edge there versus other 130/30 portfolios, and we think a lot of institutional core equity assets are going to migrate to our 130/30 structure.”

The fund, which is benchmarked against the Russell 1000 Index, charges management fees starting at 55 basis points depending on the investor type. Its minimum investment requirement for institutional investors is $10 million and $1 million for individuals.

DeRose, a former portfolio manager with Bessemer Trust and Scudder, is joined by partners Robert Hagin, a Morgan Stanley and Kidder Peabody alumni, and Patrick Morris, a former institutional salesman for Deutsche Bank and several other firms. The partners are supported by a team of analysts, programmers and sales personnel.

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