Family Office Launches Event-Driven Hedge Fund

Feb 19 2008 | 11:53am ET

Palo Alto, Calif.-based family office Judicial Capital last month launched an event-driven, long-bias equity hedge fund, using a strategy that it has run with family money with since 1999.

The fund, which was flat in its first month of trading, will focus on spin-offs and mergers and acquisitions, as well as companies with new product lines, shifts in geographic revenue mix and change in management, according to Kenneth Marshall, portfolio manager.

“The way that you outperform the hedge fund index is by seeing in certain situations an event where others don’t,” Marshall said. “So if you’re just looking at the spinoff calendar, you’ll miss some of the more significant events that’ll happen leading to enormous valuations.”

Last year, the strategy gained 23.6% and 20% in 2006. Marshall started managing family money in 1990 when TriCare, a company his parents founded, went public. His capital base expanded in 1992 when the family sold legal services startup Judicial Arbitration and Mediation Services to private equity firm Warburg Pincus.

The fund charges a 1% management fee and a 20% incentive fee. Its minimum investment requirement is $1 million.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.