Investment bank and advisory firm LRG Capital Group is teaming up with alternative asset manager Admiral Capital Management to launch a multi-strategy hedge fund.
The fund, the LRG Capital/Admiral Flagship Fund, will be managed by William Ellsworth, CEO of Admiral. Ellsworth also manages Admiral’s existing Flagship Master Fund, which launched in January 2007 with $110 million in assets under management.
"As fundamentals have deteriorated, the recession/reflation struggle leads to sharp directional market movements which create hedged-directional opportunities—the Flagship Fund employs a tactical disciplined strategy intended to take advantage of market movements," said Ellsworth.
The LRG Capital/Admiral Flagship Fund uses fundamentally based and tactically driven volatility, credit, hedged directional and relative value sub-strategies employed through convertible securities as well as other securities in the capital structure and related derivative instruments.
According to the firm, the actively managed strategy differentiates the LRG Capital/Admiral Flagship Fund from an indexed traditional convertible arbitrage approach. To create alpha, the team opportunistically overweights, underweights or eliminates certain sub-strategies, market sectors and securities.
LRG Capital is based in San Francisco and has offices in New York and Miami, while Admiral Capital is based in Greenwich, Conn.