Fund of funds shop Twin Lights Capital is looking for more exposure to non-U.S. event driven hedge funds and non-U.S. equity managers to spice up its portfolio.
The firm’s $35 million Twin Lights Fund, which launched in August 2005, currently allocates the bulk of its portfolio to equity managers. “We want to reduce our exposure to the U.S. and we’re looking for more non-U.S. and global managers,” said Lee Raker, Twin Lights’ principal. “We’re looking to play the equities market a little bit differently than just pure long/short. Our long/short plays are a combination of concentrated plays with focused positions and fundamental work, coupled with managers who are trading portfolios and have larger numbers of positions. We also have equity event strategies in various shapes and firms whether it be semi-activists or true event managers.”
The fund of funds currently invests in three event-driven managers and 13 managers in total. It also has exposure to the futures space via its allocation to a systematic trading advisor. Raker said the firm is looking to keep its stable of managers below 20.
Since inception, the fund of funds has returned 17% to investors net of fees and is up 5.7% year to date. Twin Lights charges 1% for management and 5% for performance, with a $500,000 minimum investment requirement.
Twin Lights was founded by Scott Metchik, former CIO of EIM Group, Shaun Levesque and Raker, both formerly of IXIS Asset Management.