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

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note