Saturday, 28 May 2016
Last updated 10 hours ago
Oct 31 2011 | 10:54am ET
New York-based asset management firm Eastbridge Group is gearing up to launch a new hedge fund in the first quarter. The long/short vehicle—Eastbridge Red Dot—will invest in liquid U.S. securities with exposure to real estate and real estate-related companies, which is the same strategy that the firm has been running in a separately managed account since July.
The SMA, which currently has $50 million in assets under management from a large European investor, gained 1.96% in its first quarter of trading (through September).
“Our initial short positions in the real estate services and hotel sectors along with the more leveraged REITs performed well and were profitable in August,” the firm wrote in an investor letter obtained by FINalternatives.
The fund is managed by Rick Singer, founder and chief investment officer of Eastbridge, and Michael Fowler, senior portfolio manager. Both Singer and Fowler have extensive experience in real estate investing in the public and private markets.
Singer spent a decade as managing director and head of global real estate for Salomon Brothers. Prior to founding Eastbridge in 2009, Singer was an executive managing director at Island Capital Group, a merchant bank focused on real estate, real estate securities and direct equity investing.
Before joining Eastbridge in 2009, Fowler served as director of structured products at the Geneva Group, where he focused on listed equities and other securities, including infrastructure and real estate.
Other principals include Edward Hamilton, co-founder and head of business development, and Stephanie Miller, chief operating officer.
The new hedge fund, which will provide full transparency and monthly liquidity, charges typical fees of 2% and 20%. Credit Suisse serves as the prime broker and Citco Fund Services as its administrator.