Tuesday, 27 January 2015
Last updated 10 hours ago
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.”
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…