Greenwich, Conn.-based Angler Capital in September is launching an offshore version of its one-year old equity long/short fund, which focuses on smaller-cap companies. It is looking to raise $400 million.
The Cayman Islands-domiciled offering will employ a strategy similar to its domestic predecessor fund, Angler Capital Partners, applying a private-equity approach to the small-cap space. In its first 12 months of trading, that fund is up some 50%, according to a source familiar with the firm.
“They don’t get a lot of ideas from brokers but dig in and do their own research like they were going to buy a company,” said the source. “It’s a very proactive strategy, and by focusing on change as a filter, they’re able to find opportunities inherently longer-term in nature.”
Angler also employs “constructive” activism in its investments, seeking to work with management in developing financing, acquisition of growth strategies. “The way they’ve gotten to the companies is gauging the industries’ prospects and what they see changing. They try to use that knowledge base to help management teams make sure they’re focused on what they see as value-added opportunities,” said the source.
Founder Richard Keller declined to comment on the new fund.
Fees for both funds are 2% for management and 20% for performance, with a $1 million minimum investment requirement.
Prior to founding Angler Capital, Keller was involved in private equity transactions with New York-based Sandler Capital Management, which manages both hedge and private equity funds with a multi-sector focus in media, entertainment/leisure, telecommunications, technology, information and business services and consumer companies.