RiverPark Taps Berkowitz For New Value Fund

Mar 31 2015 | 11:28am ET

Liquid alternative fund company RiverPark Advisors has launched a new value fund with former hedge fund manager David Berkowitz at the helm.

The RiverPark Focused Value fund will be Riverpark’s first value fund and was seeded by $10 million in Berkowitz’s money and $2 million from RiverPark. It will follow a high-conviction strategy aimed at capital appreciation in equities that appear to be trading below their intrinsic worth, according to a press release. 

Berkowitz and his research team will focus on U.S. companies with market capitalizations of $10 billion or more and that fall into one of two categories; high quality businesses trading at reasonable prices, or special situations that create significant distortions in the market’s perception of value, such as spin-offs, mergers, acquisitions and corporate events such as management changes. 

The team will use a fundamental, bottom-up, rigorous approach to picking stocks, and develop a quantitative framework for valuation. “We looking for the two or three key drivers of a stock’s performance,” noted Berkowitz in the press release. “With every investment, we ask ourselves ‘what do I have to believe will happen (and not happen) to make it compelling for us to own this stock?'”

The fund will also have a strong sell discipline, generally having a specific price target already in mind when entering a position.

Berkowitz was most recently with Ziff Brothers Investments, where he oversaw risk and strategy, and was a co-founder of Gotham Partners with Bill Ackman. He joins RiverPark as co-chief investment officer.

RiverPark, which sponsors a series of publicly traded funds whose strategies range from large-cap growth to structured alpha, seeks to provide access to fund managers whose approach to investing is highly differentiated. The firm has over $4 billion in AUM across eight funds.

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