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

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.