Texas Firm Launches Fund With Flat-Fee Structure

Mar 24 2006 | 1:00am ET

Iron Horse Capital Advisors is gearing up to launch its first hedge fund, a long/short fund-of-funds, on May 1, and is not charging a performance fee. Instead, the Texas-based firm will charge a flat, 1% fee for management, and is able to do so because the firm has negotiated discounted fees with the underlying managers, according to Melanie Hutson-Bittone, head of marketing for the firm.

The Iron Horse Fund will invest with 7-12 niche funds. “We are investing in long/short hedge funds where the managers have a specific expertise in a specific industry,” Hutson-Bittone said. The new offering is being managed by Eric Kottke, who founded Iron Horse in 2002 as a hedge fund search and placement firm.

Hutson-Bittone said that the firm is currently reviewing possible underlying managers, but has already made some commitments, including an agreement to invest with two “popular” hedge funds that are closed to new investors.

The fund is targeting registered investment advisors with highnet- worth and institutional clients. It will hold a soft close at $15 million and a final close at $25 million. The minimum investment is $500 thousand and there is a 90-day lockup period.  


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.