Texas Firm Launches Fund With Flat-Fee Structure

Mar 24 2006 | 12:00am 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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...