MD Sass Seeds Emerging Activist Manager

Apr 8 2008 | 2:00am ET

New York-based MD Sass has seeded a hometown activist hedge fund manager and is on the prowl for natural resources and Asia-focused managers.

A source familiar with the deal told FINalternatives that the firm has seeded Richard Rofe’s Arcadia Capital Advisors, which will manage a concentrated portfolio of micro- to small-cap names starting next month. Arcadia was seeded by MD Sass-Macquarie Financial Strategies, the $273 million private equity fund.

The source said the firm put a substantial amount into the operating business and the fund, but declined to specify on the exact amount invested in Arcadia. He said the firm, which is no stranger to the activist space having invested in distressed securities portfolios for the past 20 years, is bullish on Arcadia’s pipeline for deals.

“If you look at the world today, there are a lot of micro-cap and small-cap stocks that have gone down quite a bit even though their operating businesses are doing pretty well,” the source said. “And many of these companies are really of a size where it doesn’t pay for them to be public companies anymore because of the expense of being a public company, particularly the legal and accounting expenses. Therefore, many of these companies should either be the acquirers, be acquired, or go private, and we think we can illuminate those opportunities.”

Prior to launching his maiden hedge fund, Rofe served as an adviser to other activist hedge funds, according to the source.

Going forward, the source said MD Sass is “very interested” in the natural resources space and Asia, including India, “both on the credit and equity side.” The firm last year seeded an Asian equity long/short vehicle investing in Taiwan, Hong Kong and greater China and a natural resources prviate equity fund that makes equity investments in mining concerns in Africa, Asia and Latin America.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...