One firm is looking to leverage its experience in shorting stocks with a new 130/30 strategy. New York-based Cramer Rosenthal McGlynn last month launched the CRM 130/30 Value Fund, which is the sister fund to its long-only Large Cap Opportunity Fund.
The 130/30 fund launched on Jan. 2 with seed money from employees and friends of the firm, according to Christopher Barnett, the firm’s director of marketing.
CRM, which launched its first hedge fund in 1993, is no stranger to hedge funds. “We’ve run hedge fund money here since 1993 so we obviously have some experience on the short side,” Barnett said. “It’s a fundamental strategy, not quantitative.”
Barnett added that the firm was tossing around the idea of launching the 130/30 strategy last year and felt that the timing was right to “really add some value above what we’re doing in the long-only fund.”
The CRM 130/30 Value Fund charges a 1.25% management fee and its institutional minimum investment requirement is $1 million.
Cramer Rosenthal also manages the CRM Windridge Partners, a long/short equity hedge fund that invests in real estate investment trusts, real estate operating companies, and two other bottom-up, value-oriented long/short equity funds.
All told, the 35-year old firm manages some $11.5 billion in long only and hedge fund assets.