Ex-I-Banker Unveils Concentrated Micro-Cap Hedge Fund

Jun 28 2011 | 5:37am ET

A Piper Jaffray veteran has launched his first hedge fund, using a concentrated micro-cap strategy that he says has earned him 26.7% annualized audited returns over the past seven years.

Mark Spiegel's Stanphyl Capital's maiden fund isn't for the faint of heart: The vehicle, which currently manages $2 million, invests in just three to 10 "best ideas," HedgeCo.net reports. What's more, those best ideas come primarily from the highly-volatile micro-cap space, and Spiegel says the fund could hold most or all of its assets in cash from time to time as it waits for an attractive opportunity.

While the long book will feature stocks primarily, the short book will include individual stocks, index exchange-traded funds and macro ETFs. New York-based Stanphyl employs only "modest" leverage, according to HedgeCo.

Given the roller-coaster ride that the fund, which launched earlier this month, could take investors on, Spiegel has set a limit on how much he'll accept from each investor, refusing any more than 10% of his or her liquid net worth.

Speigel most recently worked at Piper Jaffray, structuring private placements. He also formerly worked at a micro-cap technology company.

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