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.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...