In A First, Maverick Seeds Long/Short Value Shop

Apr 18 2012 | 12:15pm ET

Another prominent hedge fund has gone into the seeding business.

Maverick Capital Management has made its first two seed investments in start-up hedge funds, the first beneficiary said. Sycamore Lane Partners, a long/short value specialist, told clients that Maverick had made "significant capital contributions with extended lock through 2015," although it did not specify exactly how much the $9 billion hedge fund had invested.

According to a regulatory filing last year, Maverick set up a $22 million seeding pool. The firm has seeded another hedge fund in addition to Sycamore Lane, although its identity is not known, Dow Jones Newswires reports.

Both of the funds are now up-and-running; Sycamore said that Maverick's seed allowed it to begin trading on April 2. "While neither Maverick nor its affiliates will be active in the management of the day-to-day business of the Sycamore Lane funds, Maverick will be in a position to provide strategic advice on the development of Sycamore Lane's internal operations and infrastructure," Sycamore Lane said.

Unlike Tiger Management's Julian Robertson, Maverick does not appear to be seeking out "cubs" to seed: Sycamore Lane founders James D'Angelo and Cregg Watner are not Maverick veterans. Instead, both were senior analysts at Elm Ridge Capital, with D'Angelo focusing on consumer and industrial stocks and Watner on technology and healthcare. D'Angelo also formerly worked at SAC Capital Advisors.

Sycamore Lane aims to have a long book of between 20 and 30 names and a short book of between 30 and 50 names. The latter will focus on stocks with liquidity issues, aggressive accounting or poor capital allocation.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...