Wednesday, 1 April 2015
Last updated 25 min ago
May 16 2007 | 9:54am ET
Charlotte, N.C., otherwise known as the hub of stock car racing, is now home to a new hedge fund. Charlotte Global Advisors this month launched Tryon Street Partners, a volatility arbitrage fund.
Scott Ladner and David Burelli, formerly with Wachovia as a trader and marketer, respectively, founded the firm in September 2006.
“We thought the market was ripe for a volatility arb fund and if you check the universe of hedge funds there are not that a great deal of volatility arb fund managers out there,” said Burrelli.
The new vehicle, which was launched with $1 million, employs two strategies: a pairs trading strategy where it looks for mispricings between options on the same underlying names or names within the same industry; and a dispersion trading strategy where it looks for anomalies on option pricings between options on the names that make up an index and options on the actual index.
The Wachovia alumni are marketing the fund to friends and family, and are in talks with a seeder to ramp up its assets “significantly,” according to Burelli, who declined to comment further on the pending deal.
In general, Burelli said the firm’s fundraising efforts have been good but investors have expressed concerns over the fund’s lack of a track record and the fact that it is based in Charlotte, which is not exactly known for having a robust hedge fund community.
“We knew going in that it was going to be more difficult acquiring investments if we were here [in North Carolina] trying to acquire investors up in New York, but this was something we wanted to do,” said Burelli, who wanted to remain in Charlotte because of his family.
The fund charges fees of 2% for management and 20% for performance, with a $500,000 minimum investment requirement.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…