New York-based Hagin Investment Management is prepping its second product, a market-neutral hedge fund, for launch in the third quarter.
Kathleen DeRose, partner and portfolio manager, said the fund will employ a quantitative approach based on fundamentals. DeRose will manage the fund with recently hired Nathan Lee, formerly a risk manager at New York-based Tremblant Capital.
“Having been through the last year of deleveraging in the marketplace, the opportunities for the market-neutral strategy are a lot better than a year ago,” said DeRose. “And that’s due to the fact that people’s expectations are more reasonable in terms of what a fund like this can achieve, and also because opportunities in the marketplace have become better with some stock prices having come down. We see it as a good time to launch this fund.”
The firm is targeting insitutional investors for its maiden hedge fund offering and has set its minimum investment requirement for institutional investors at $10 million. Its fees are yet to be determined.
Hagin last year made its debut with a 130/30 quantitative strategy with less than $10 million in partner capital. The strategy is currently performing better than average compared to its peers but is currently down this year, according to DeRose.
DeRose, a former portfolio manager with Bessemer Trust and Scudder, founded Hagin with partners Robert Hagin, a Morgan Stanley and Kidder Peabody veteran, and Patrick Morris, a former institutional salesman for Deutsche Bank and several other firms.