LDV Preps Maiden Activist Hedge Fund

Feb 12 2008 | 1:00am ET

LDV Capital Management is prepping its maiden hedge fund offering, Three Rivers Activist Fund, for launch sometime within the next few months. The Pittsburgh-based firm hopes to attract commitments of $50 million to deploy within the small-cap space.

The fund will invest in the equity and equity-related instruments of listed U.S. companies with market capitalizations of between $120 million and $250 million. It will acquire significant minority equity stakes—typically between 5% and 15%—in target companies within the basic materials, energy, industrial goods and conglomerates sectors.

The fund’s portfolio manager, Lodovico de Visconti, uses a value-driven approach in the selection of companies that are undervalued based on their fundamentals. He is currently reviewing over 15 potential target companies to invest and plans to narrow the list down to three to five companies for the fund’s portfolio. The typical holding period of the fund will range between six to over 12 months.

Visconti explained that he’s keeping the portfolio concentrated because he wanted to be nimble enough to “pick and choose” the types of companies that he can apply a “hands-on approach” to.

“We’re looking for underleveraged, undercapitalized, undervalued and overlooked companies,” he said.

Three River’s minimum initial investment is $1 million and subsequent incremental investment minimums are $500,000. It charges a 1.25% management fee and a 20% incentive fee.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note