California-based asset manager SoHo Capital Partners has recently launched its first hedge fund, a macro absolute return fund. Frank Troise, managing partner, described the fund as “a throw back to the old Soros, Steinhardt macro-fund.”
Troise said that SoHo, which he founded in 1997 and named after a neighborhood in his native New York, is a value-oriented investment firm, “so we have a large-cap and a small-cap product, and the hedge fund is an extension of that.”
Troise, who is not fond of the word “hedge fund,” said he decided to launch this type of vehicle because he wanted the flexibility to use various investment strategies, including going long and short and investing across asset classes.
“If we see something on the distressed side, we’ll participate in it, if we see something on the currency side, we’ll participate in it.”
The firm is currently managing money from individuals and family offices, and is open to taking in money from institutional investors, though Troise doesn’t see that happening any time soon.
“I’m a third party marketer fund-of-funds nightmare,” laughed Troise. “I have so many guys who sit down with me and ask what box we fit into, and I say, ‘we don’t.’”
Troise anticipates the fund will take in $200 million by year’s end. There is no firm target close, but Troise said, “the biggest constraint to growth would be keeping up our transparency.”
The fund, which has the ability to incorporate a significant amount of leverage, has a minimum investment of $250,000 and no minimum lockup. There is a 1.5% management fee and a 20% performance fee.