Bay Hill Launches Maiden Hedge Fund

Jul 29 2008 | 2:00am ET

Boston- and San Francisco-based Bay Hill Capital Management this month launched its first hedge fund, a multi-strategy volatility offering with $25 million in initial assets.

According to Alec Petro, managing partner, the Bay Hill Fund has three sub-strategies: volatility arbitrage, which is a broad vega-neutral, high-frequency portfolio; dispersion, which trades different stock indices against the components that make up those indices; and relative value, which is more opportunistic and flow-driven.

“They’re not correlated so it produces a nice robust return stream, specifically in volatility,” said Petro. “It’s unique and I don’t know of any funds out there that think of volatility in different sub-strategies and combine them.”

Petro said the volatility in the market will present the fund with plenty of opportunities going forward but “we like to think that we will perform reasonably well in low volatility as well as high volatility environments.”   

The fund charges a 2% management fee and a 20% incentive fee with a $1 million minimum investment requirement.

Petro, along with Doug Goldberg and Dominic Rugani, former partners at San Francisco-based Parallax Fund, are the co-principals of the firm.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of