Alpha Equity Sells Stake To Trusco Capital, Preps 130/30 Fund

Jan 3 2008 | 3:49pm ET

Trusco Capital Management, a subsidiary of SunTrust Banks, has signed a definitive agreement to acquire a minority equity interest in Alpha Equity Management, which manages a variety of equity hedge funds and 130/30 strategies.

No economic terms were disclosed.

Following the transaction, Alpha Equity will continue to operate as an independent alternative asset management boutique under the Alpha Equity name and maintain its offices in Hartford, Conn., and New York.

The addition of Alpha Equity will allow Trusco to participate in the tremendous growth that is anticipated for alternative investments, particularly in 130/30 strategies. Total assets in 130/30-type products is currently estimated at $100 billion, and some sources estimate that over the next five years, demand in both the institutional and retail marketplaces could drive that number to more than $1 trillion in assets.

"Our clients, who continue to seek new ways to diversify their portfolios, will have a keen interest in this addition given Alpha Equity's very impressive six-year performance record and its managers' expertise in running long/short portfolios," said David Eidson, CEO of Trusco Capital.

"We are delighted to have Trusco as our partner in our business, The 130/30 fund space is potentially a very large marketplace for us," said Alan Glatt, a partner at Alpha Equity. "To participate in the 130/30 space, you either build a track record or in our particular case we offered built-out infrastructure and attractive six-plus year track record in international equity, U.S. REITs, U.S. equities.”

Glatt added that the firm, which is currently managing three 130/30 products, plans to launch an international 130/30 real estate fund by the second quarter. The fund will invest in real estate investment trusts as well as other real estate-related securities.

Alpha Equity was founded by Kevin Means in 2000 and has over $200 million in assets under management.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.