New Cleveland Small-Cap Fund Seeks $300M

Jul 31 2013 | 9:30am ET

Rivanna Capital alumnus Ben Mackovak has launched a hedge fund in his hometown.

Mackovack, who grew up in suburban Cleveland, rolled out his Cavalier Capital on March 1, Crain's Cleveland Business reports. The new fund will invest in small-cap companies, albeit with an eye to liquidity.

"We're trying to find these small diamonds in the rough that the rest of Wall Street is ignoring," Mackovak, 32, said. "We're really looking for good businesses, predictable businesses, businesses with valuable assets that are underappreciated by the market. We're not trying to invest in the Web site that could be the next Facebook."

Given its focus, Mackovak said that Cavalier will remain small itself, with plans to close the fund at $300 million. Larger small-cap funds "simply have too much money to put to work," he said. "We're a deliberately small fund, and we'll always be a small fund."

Mackovak would not quantify precisely how small a fund Cavalier is presently, telling Crain's only that the fund's assets have grown by 60% since its launch and that the firm has 43 investors. He plans to market the fund beyond its current high net-worth and family office base to institutional investors after Cavalier has a one-year track record, adding that he hopes to reach $300 million within a couple of years.

Mackovak most recently spent six years at Rivanna, based in Charlottesville, Va., where Mackovak earned his MBA at the University of Virginia. His firm is named in honor of that school's mascot and Mackovak's favorite basketball team, the Cleveland Cavaliers.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.