Wednesday, 1 April 2015
Last updated 7 hours ago
Aug 11 2006 | 12:00am ET
ChipInvestors Group is readying to launch a long/short hedge fund that will invest exclusively in semi-conductor companies. “We believe that we are one of the very few, if not the only, investment funds that is structured like a hedge fund and is focused 100% on the semiconductor space,” said Manoj Nadkarni, founder and portfolio manager of the Washington State-based firm.
The fund, ChipInvestor Partners L.P., is set to launch Sept. 1. Nadkarni explained that the firm’s investment approach is twofold. First, it will take a macro-approach to analyzing the industry and where it is in its cycle of growth, and second, it will take a bottom-up approach, evaluating the fundamentals of each company in which the fund invests.
“Semiconductor companies are enablers of technology, they drive the whole technology sector,” said Nadkarni, who, before forming a Registered Investment Advisor earlier this year ran a research publishing firm from 1999 to 2005 that focused on the semiconductor space. Prior to that, the MIT-educated engineer worked in the semiconductor industry for over 12 years. Nadkarni believe that his long-history and inside knowledge of the industry will give him and his firm an edge when it comes to evaluating investments.
The minimum investment in the new fund is $1 million for institutions and $250,000 for high-net-worth individuals. The lockup period is three years. Nadkarni decided upon a three-year lockup because the industry is cyclical and he does not want investors to flee at the first sign of trouble in the sector.
“The first time we have a panic, we would get notices of redemption, so it is in the best interest of the limited partners to have a 3-year minimum lockup,” he said.
Fidelity Investments is serving as the prime broker for the new fund. Holland & Knight is providing counsel. The auditor is Harb Levy and the administrator is NAV Consulting.
“This fund is well suited for any investor who wants to put a small portion with a sector specialist,” said Nadkarni.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…