Thursday, 28 August 2014
Last updated 2 hours ago
Apr 28 2006 | 1:05pm ET
Connective Capital Management launched its most recent fund, a long/short vehicle focusing on technology and alternative energies, on April 1. The hedge fund is the third to be offered by the Silicon Valley firm, which launched its first fund one year ago with $5 million and now has a total of $125 million in assets under management in its three funds. The newest vehicle, Connective Capital I QP, has taken in $30 million thus far.
Rob Romero, managing director, believes that being in the middle of the technology capital of the U.S. gives his firm an advantage when it comes to spotting great products and companies.
"We are based in Palo Alto (Calif.)…o rather than being in New York or San Francisco or some other financial center, we are actually in the middle of the action," Romero said. "Being here we have better access to data as to what companies are doing well and what ones aren't doing well."
Romero, who has a background in technology and has worked at Cisco Systems and various start-up hi-tech firms, uses his industry experience and his network of contacts to evaluate public companies.
"We really use our proprietary network of industry contacts to get access to information that is different than other funds," he said. "We believe beta should be free and investors should only pay for alpha, so we keep the fund's beta close to zero. We focus on deep fundamental research, taking longer-term views on the market."
The minimum investment in the new fund is $500,000 and there is no lockup period. The firm is targeting funds-of-funds, family offices and larger institutions, and the fund has the capacity to take in up to $500 million.
Connective Capital, which has grown from four to eight people over the past year, also has a venture capital arm. Connective Capital Ventures runs a fund that is focused on start-up tech firms, though it is currently closed to new investors.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...