Larson Makes Fundraising Push For Post-Sowood Venture

Jul 25 2008 | 12:10pm ET

The founder of collapsed hedge fund Sowood Capital Management is reportedly pulling out all the stops to raise money for his new hedge fund venture.

Jeffrey Larson is fundraising for Larson/Kelleher Capital Management, a “limited leverage, value-driven portfolio,” according to marketing materials obtained by Reuters. Larson’s reemergence with LK Capital was reported last week by FINalternatives.

The new fund will invest in small- and mid-sized companies battered by the same credit crisis that doomed Sowood, which lost about $1.5 billion on fixed-income bets last year, as well as short-maturity leveraged buyout debt.

“We focus on investments with a ‘margin of safety’ and, where appropriate, attempt to further enhance risk/return profiles though the application of hedges,” Larson wrote in a written presentation.

Larson, a former money manager for Harvard University’s endowment, has been making the rounds in Boston to find investors for LK Capital.

“He has been calling virtually everyone in town, leaving no stone unturned,” one Boston-based investor told Reuters. So far, he has reportedly enjoyed mixed success at best, with one investor telling the news agency that his clients would “crucify” him if he invested with Larson, and another saying, “relaunching a problem is not for us.”

In addition to namesakes Larson and Megan Kelleher, the former legal counsel for Sowood, LK Capital has also hired Sowood alums Michelle Gillespie and Doug Francis, who joined Tisbury Capital Management after Sowood’s fall. The firm has about 18 employees.

 


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.