WR Capital Launches Multi-Strat Fund of Hedge Funds

Feb 8 2008 | 2:00am ET

Stamford, Conn.-based WR Capital Management has recently added a multi-strategy hedge fund product to its lineup. The WR Select Fund launched in November 2007 with $200 million in partner capital.

It’s been a mixed-bag in the early going for the fund: It fell 0.33% in November and jumped 1.29% in December, before dropping 3.51% last month.

The new vehicle is a fund of hedge funds investing in approximately 50 managers across six strategies. It is looking to achieve annualized returns of 10% to 12% over a market cycle of three to five years.

The vehicle charges a 1% annual management fee and a 10% incentive fee, offering quarterly liquidity with no lockup.

The firm also manages the WR 130/30 fund, which launched last January with over $60 million in partner capital. That fund offers investors 100% exposure to the Standard & Poor’s 500 and 30% exposure to its WR Multi Strategy Fund, a multi-manager market neutral fund of hedge funds, which is currently invested in over 30 different market neutral strategies; six quantitative market neutral strategies and over 25 fundamental based market neutral sector specific strategies, according to the firm.

The fund is targeting net returns of 15% to 20% with a standard deviation of 8%.

Walter Raquet, the former founder, of Knight Trading Group, founded WR Capital  in February 2004. The firm currently manages $388 million in total assets.


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