New Hedge Fund Will 'Do The Right Thing'

Jan 31 2012 | 5:54pm ET

Two firms have joined forces to launch a new hedge fund that seeks to do well by doing good.

The Do The Right Thing fund will invest in companies and market sectors dealing with hunger, thirst and disease, as well as in clean energy, HFMWeek reports. In addition, the fund, which will have long fixed-income, options selling and position trading portfolios, will also donate part of its fees to charity.

The fund is the brainchild of California-based Herron Capital Management and Britain's Interbank Trading Technologies. It will launch within the next two to three months.

"We believe that investors can dictate the tempo of providing real solutions for our world's problems by investing in new technologies designed to move humanity forward," portfolio manager Michael Herron told HFM.

In addition to any returns, investors will get to choose which charities get a piece of the fund's fees—and a tax deduction, to boot. The fund offers a capital guarantee and minimum rate of return.

Do The Right Thing has a $25,000 minimum investment requirement and $2 billion capacity, with a five-year lockup for investors who choose the capital guarantee and no lockup for those who forego it. It will charge 1.5% for management and 25% for performance.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of