Monday, 2 May 2016
Last updated 2 days ago
Jul 16 2007 | 6:11am ET
Groton, Conn.-based Do Asset Management has begun marketing its $10 million equity long/short fund to outside investors, with the goal of reaching $250 million by year-end.
The fund, which launched in October 2004, is derived from the firm’s foundation as a provider of valuation and risk management to the pharmaceutical, biotech, and energy sectors. “The fund was started to apply our know-how of private asset valuation in the public markets,” said co-founder Gill Eapen. “We have a long/short strategy that tends to be market neutral and we don’t take any sector or size exposure. We don’t generally buy beta risk [instead] going after alpha.”
Eapen added that the fund can be customized for either institutional investors looking for low beta returns or high-net worth investors seeking absolute returns. The fund is being shopped by third-party marketer Alpha Introductions.
The long/short offering, DoAM’s flagship, returned 22% on an annualized basis and 9.4% YTD. Its 1:1 levered version has fared even better, with a 25.4% annualized return and 14.6% YTD. The fund charges 2% for management and 20% for performance, with a $500,000 for investments in the fund and $3 million to $5 million for separately-managed accounts.
Eapen is a former group director of Pfizer, responsible for the company’s portfolio management. Former Pfizer executives Pierre Etienne, Dilip Mehta, Craig Saxton and Ian Williams round out DoAM’s management team.