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

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of