Empiric Launches MLP-Focused Fund

Aug 16 2012 | 1:53pm ET

New York-based Empiric Asset Management has launched a long/short fund focused on energy Master Limited Partnerships.

The Empiric Strategic Income Fund, with $15 million AUM, was up 10.51% in July, bringing its total returns since its March 2012 inception to 17.32%. It’s managed by Jeff A. Baehr.

The fund hopes to outperform MLP indices while taking “significantly less” exposure than traditional buy and hold strategies in the sector. On average, Baehr expects 50% monthly turnover, 30% average net exposure and 75% average gross exposure.

The Empiric team has worked together since 2004 and launched its flagship Empiric Market Neutral Fund in 2008. That vehicle trades MLPs in a market neutral framework. The new fund will benefit from “models and existing infrastructure” developed for the flagship.

Baehr says the Strategic Income Fund distinguishes itself from the market neutral vehicle in that it takes directional exposure. "It’s based on the premise there are particular inflection points to be involved in MLPs and other times not to be," Baehr told FINalternatives in an e-mail. "Market Neutral was always invested and did not take net exposure."

The Strategic Income Fund strategy “combines qualitative analysis and intuitive quantitative techniques while relying on fundamental-based data to determine the attractiveness of companies in the universe.”

The new fund carries the standard 2 and 20 fees. Minimum investment is $1 million although smaller amounts may be accepted at the manager's discretion. Baehr says the fund, within its current parameters, has a capacity of $400 million.

The auditor is WeiserMazars, administrator is Swiss Financial Services, prime broker Merlin Securities and the custodian is JPMorgan Chase.

 


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.