Sunday, 25 January 2015
Last updated 2 days ago
Jun 1 2007 | 11:23am ET
Wall Street veteran Robert Okun has recently opened his first hedge fund to outside investors. Okun has been trading his own capital in the vehicle, the RORS Appreciation Fund, for two years, and says that the fund, which has averaged annualized returns of 15% net of fees, now has a long enough track record to attract institutional money.
“We are in the long/short fund category, but what we really do is run what I call a hedge long/long fund,” explains Okun, who has managed money at JPMorgan, UBS and SG Cowen. “We are not short anything, we are long puts…we are non-levered, there is no margin, but what makes it a hedge fund is that we are hedged, and our fees.”
The fund holds approximately 55 names at any given time. “We go full throttle on our equities but keep a dynamic hedge of around 75% of our stocks, but it does ebb and flow based upon the credit quality of our names,” says Okun. “We are a very high alpha-type strategy, but because of the hedge we smooth out our volatility and our beta as well.”
Okun is joined by Ron Saad, who heads up the New Jersey-based firm’s operations and the technology side of the business.
The fund charges fees of 1% for management and 20% for performance. Its prime broker is Shoreline Trading; Sadis & Goldberg is legal counsel; Rothstein Kass & Co. is the auditor; and Goldman Sachs is the clearing broker.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…