Monday, 29 August 2016
Last updated 2 days ago
May 15 2008 | 9:54am ET
A pair of ex-Iron Mountain Capital Partners executives has started its own fund of hedge funds shop, and is prepping its maiden offering for launch this summer.
Ron Laurent, managing partner and chief investment strategist, Benjamin Browning, managing partner and chief compliance officer, and Deborah Grosser, director of marketing, started the Veritas Global Alpha Fund in March. They are looking to garner between $20 million to $25 million in initial assets. Murray Froikin, marketing and strategy adviser, rounds out the front line for Veritas.
According to fund documents obtained by FINalternatives, the Global Alpha fund will invest in about 20 to 25 underlying managers representing a range of strategies, including global macro, emerging markets, equity long/short, multi-strategy, fixed-income arbitrage, event-driven, dedicated short-bias, convertible arbitrage and managed futures.
The fund takes an opportunistic approach to its hedge fund bets, according to Laurent, taking into account the macro environment.
“Looking into 2008, we think the mortgage crisis is going to do a lot more damage, and we want strategies that have no or negative correlation to the U.S. equities and debt markets such as global macro, managed futures and short-bias,” he said.
Unlike its larger competitors, the fund will source the universe of established managers and emerging, sub-$100 million managers, who tend to perform better than more established counterparts, according to Laurent, who added that the new vehicle will have a higher turnover rate than its larger industry rivals who target consistent returns with low volatility.
The firm is working with BRN Institutional Advisors, a newly formed third-party fundraiser, to market the fund, which charges a 1% management fee and a 20% incentive fee with a $1 million minimum investment requirement.
Prior to co-founding Veritas, Laurent and Browning served as head of research and chief compliance officer respectively at Iron Mountain Capital, a New Jersey-based fund of hedge funds. Grosser spent time as a research analyst at Salomon Brothers and Lehman Brothers, and Froikin has 25 years of experience in financial, strategic and long range corporate planning in a variety of industries.