EnTrust Nets $600M For Activist Fund Of Funds

Jan 13 2014 | 12:44pm ET

Fund of hedge funds EnTrust Capital has garnered $600 million to invest in one of the industry's hottest strategies: shareholder activism.

The New York-based firm raised the money late last year, much of it for the new EnTrsyt Global Activist Fund. That vehicle, which debuted in November, has invested with such well-known activists as Trian Fund Management and ValueAct Capital.

The activist bent is not new for EnTrust, which has invested with the likes of Carl Icahn and Steel Partners for more than 10 years. The new fund plans to invest in as many as 10 such managers, and in addition to Trian and ValueAct features Blue Harbour Group in its portfolio.

"What we have seen in the institutional world is continued disenchantment with the traditional long-only" managers, EnTrust's Gregg Hymowitz told Bloomberg News. "Activism from an academic and real return perspective has proven its worth."

But the EnTrust founder is wary of the strategy's growing popularity.

"What you have to be careful about is you are going to have more and more guys calling themselves activists," he said. "Soon everyone and their mother will be an activist."

Hymowitz said the new fund aims to return three to five percentage points above the return of the Standard & Poor's 500 Index.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...