MFS Launches Emerging Hedge Fund Seeding Firm

Sep 25 2007 | 9:09am ET

After decades of managing long-only assets, MFS Investment Management is shifting its focus to hedge funds. The long-time Boston-based mutual fund manager is making its foray into the hedge fund space with the formation of a new subsidiary that will provide seed and expansion capital to emerging hedge fund managers.

The new subsidiary, Four Pillars Capital, will be run as a separate entity from MFS.  The two entities will not share investment resources, although MFS will provide key operations, marketing and distribution support to Four Pillars.

“Our institutional clients are increasingly demanding alternative investments to complement long-only strategies and diversify their portfolios,” said MFS Chief Executive Officer Robert Manning. “We have created a new subsidiary to provide seed and expansion capital to help talented emerging hedge fund managers build their businesses. Many are looking for support in such areas as operations, marketing and sales, which a relationship with MFS and Four Pillars can help provide.”

Thomas Knott, who co-founded value-oriented hedge fund K Capital Partners in 1998, will serve as president of Four Pillars. Eric Lass, formerly a portfolio manager of K Capital’s Credit Opportunities Fund, will serve as Four Pillars’ chief investment officer.

Four Pillars’ focus will be on hedged strategies that do not rely on the extensive use of leverage or illiquid private securities to generate returns.

“We’re looking for strategies that rely on the manager’s fundamental analytical skill to produce attractive risk-adjusted returns,” said Knott. “Hedge fund failures are commonly the result of operational problems. MFS will provide extensive operational support in addition to state-of-the-art risk management tools to help mitigate this risk.”

As of the end of June, MFS managed $202 billion in individual and institutional assets.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note