Utah Firm Readies To Roll Out L/S Fund

Sep 8 2006 | 8:45am ET

Marriott Affiliated Capital Partners of Alpine, Utah, is gearing up to launch its latest offering, a long-short fund, later this year. Todd Draney, managing partner of Marriott, said the new offering will be similar to his 32-month-old Ensign Fund, but with less volatility.
 
“[The Ensign Fund] exploits inefficiencies in markets that are provided by stock style dispersion,” he explained “The new fund is the same model as the Ensign Fund, but it has another trading layer over top which should smooth out the performance curve a little bit.”

The fund, which has yet to be named, will average approximately 40 long and 30 short positions, and it will invest across all sectors and market capitalizations.

“At any given time we may look like a small-cap growth manager or we may look like a large-cap value manager,” Draney explained. He added that the fund will employ the firm’s “quantitative behavioralist” approach, in which the managers use quantitative models to try to find
patterns of human behavior in stock price movements.

“It’s not an absolute return fund, it is a total return fund,” he said. “We are not trying to plug away at 8 or 9% year-in and year-out, that’s not our business…So, you may have a 60% return one year and you may have minus 3% another year.”

The Alpine, Utah-based firm—which was named after co-founders Draney and Jonathan Ferrell’s alma-matter, Marriott School of Business at Brigham Young University—is aiming to launch the new fund with $10 million in assets under management. Fees are 1% for management at 20% for performance. There is a one-year lockup and the minimum investment is $500,000.

PB is Merlin Securities is serving as the prime broker; Rothstein Kass is the auditor; Holme Roberts Owen serves as legal counsel; And Price Meadows is the administrator.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR