A former Old Lane Partners manager has returned home to launch a high-concentrated hedge fund focused on Russia.
Viatcheslav Pivovarov's Altera Capital will launch its maiden hedge fund by the end of the year, HFMWeek reports. The Altera Absolute Investments Fund is expected to debut with about US$100 million in assets.
Altera will employ a value-focused event-driven strategy, investing most of its capital in a handful of liquid Russian stocks. The fund will have just eight to 10 long positions and five to 15 shorts.
Pivovarov, who has been serving as an adviser to Russia's minister of economic development, founded Altera last year after leaving Citigroup, which bought Old Lane in 2007, just a year after he joined the firm to build its global value strategy. After Citi shuttered Old Lane in 2008, Pivovarov worked in the firm's Citi Alternative Investments unit.
Prior to joining Old Lane, Pivovarov spent two-and-a-half years at Third Point.
Altera will charge 2% for management and 20% for performance. It will have a US$3 million minimum investment requirement, and will offer monthly liquidity. There is to be no lockup, but investors who redeem prior to its first anniversary will pay a 5% early redemption fee.