Cannon Fires Up Second Market Neutral Fund

Jun 18 2007 | 10:25am ET

Two months after making his first hedge fund offering, Rusty Cannon is back with a market-neutral offering dubbed the RKC Matador Market Neutral Fund. The fund launched on June 1 with $1 million.

RKC’s new offering follows the same strategy for picking long stocks as its predecessor long/short fund, but couples each long position with a corresponding short position in the sector exchange-traded fund, according to principle Rusty Cannon. “We’re trying to garner the alpha perfomance of those long stocks over and above those sectors and it’s diversified across all sectors across the markets,” said Cannon.

The new offering charges 1% for management and 20% for performance, with a 6% hurdle rate per annum. Its minimum investment requirement is $250,000.

Cannon’s flagship RKC Matador Fund, which launched in April, was hit with a drawdown of 10% in its first month of trading, and is down an estimated 7% to 8% through May. “A couple of key first holdings in the semiconductor materials sector got beat up pretty good but I’m still very confident in their outlook toward the end of the year,” said Cannon. “But that fund is definitely more aggressive than the second fund.”


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note