Minuteman Capital Makes Haste With New Income Fund

Oct 14 2008 | 1:39am ET

During times of uncertainty and high volatility, one Boston-based hedge fund is trying to live up to its name with a new offering designed to capture higher returns than government or blue-chip corporate bonds while, at the same time having less volatility than equity funds.

Minuteman Capital Management has launched its Minuteman Income Fund, which writes out-of-the-money put options on undervalued stocks to generate profits.

When the fund does exercise its options, it purchases the underlying stocks at bargain prices and realizes significant gains as the stocks return to fair value, according to fund documents.

The fund is targeting 11% annual returns with half the volatility of the Standard & Poor’s 500 Index.

Earlier this year the rookie hedge fund shop launched its eponymous long/short offering investing in a diversified portfolio of those undervalued stocks. However, the fund has met the same fate as many of its brethren, dropping 7% through September.

Minuteman Capital was founded by Calvin Wilder, a former equity analyst at hedge fund Media Group Investments. Wilder also founded Thrive Networks, an IT outsourcing company, and sold it to Staples.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

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

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of