3-Sigma Debuts L/S Equity Fund

Aug 6 2007 | 11:55am ET

New York-based 3-Sigma Value Management recently launched its first hedge fund, a $6 million equity long/short vehicle.

The 3-Sigma Value Fund invests through an integrated process combining top-down analysis and bottom-up analysis, according to fund documents. It is focused on the technology, media and telecommunications, natural resources/energy, healthcare and distressed sectors.

The fund limits its gross exposure to 200% of equity while its net exposure generally ranges between 20% and 80%. It designates its long exposures as “core” and “non-core” with core positions limited to 10% of the portfolio and non-core positions at 5%. In addition, its short positions are limited to 5% of the portfolio. 

Prior to launching the fund in March, co-founder Benjamin Weinger was managing the same strategy from August 2005 through February 2007 for a family office, returning 26% on an annualized basis since inception. Since launch, the fund is up some 11.6%.

The fund charges 2% for management and 20% for performance, with a $500,000 minimum investment requirement.

Michael Kass, a former vice president of the restructuring group at Lehman Brothers, and Kareen Mozes Laton, a former vice president in the private wealth management division of Goldman Sachs are the other founding partners.

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