Paragon Capital Advisors is ready to ramp up its assets under management.
The New York-based hedge fund is set to open its flagship vehicle to institutional investors, hoping to boost assets from their current $20 million to an initial $100 million capacity, HFMWeek reports. Paragon plans to market its wares to a variety of institutional investors, including pensions, endowments, funds of hedge funds and family offices, as well as hedge fund seeders.
"We have proven for many years that we can outperform the market with less risk," managing director Kevin Pollack told HFM of the now six-year-old fund. "However, in this increasingly challenging fundraising environment, we are open to evaluating all alternatives with investors, including seeding arrangements."
Paragon, which started as a family office, focuses on U.S. and Chinese investments, although its mandate allows it to invest globally. The fund has managed a 30.16% average annualized return since its debut in October 2005.
Paragon charges 2% for management and 20% for performance, with a $250,000 minimum investment requirement. There is a one-year lockup for investors in the offshore version of the fund and a two-year lockup for the onshore fund.