Wednesday, 20 August 2014
Last updated 5 hours ago
Jan 7 2014 | 2:06am ET
One major hedge fund investor is taking a big shot at a lower-fee alternative.
New York-based family office Summer Road has pulled about half of its investments from hedge funds and pledged it to a new mutual fund of hedge funds headed by hedge fund manager Brad Balter. Balter's eponymous Long/Short Equity Fund debuted last week with $100 million, all of it from Summer Road.
The new fund has two underlying managers so far: Apis Capital Advisors and Midwood Capital Management. Both firms have produced annualized returns of about 10% since inception, and both will run the same strategy for Balter as they do for their own hedge funds, albeit for less money: Apis and Midwood charge their hedge fund clients 1.5% for management and 20% for performance, while Balter's new fund will charge just 2.19% to 2.54%.
"We've analyzed the equity long/short space pretty carefully, and the lack of consistency of returns coupled with very high fees led us to conclude that the alternative mutual fund product type was a superior value," Summer Road President David Sackler told CNBC. "It's just a better mousetrap."
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the 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. Read more…
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 Editor's Note