Monday, 23 January 2017
Last updated 2 days ago
Dec 7 2006 | 9:16am ET
New York-based Traunche Capital Advisors is launching its maiden hedge fund, Traunche Global Micro Fund, in January with some $6 million in initial capital.
The global long/short vehicle will look take a top-down approach to investing in companies that are less covered by equity analysts, according to founder Evan Vaughan. “I’ll rather look at an electrical equipment maker than a tech company,” he said.
“Some of these larger funds are not going to look at a $150 million company whereas we are more than willing to spend a few days going through everything about that company.”
The fund will also make macro bets on exchange-traded funds, said Vaughan. The fund’s current top holdings include Gazprom, the Russian oil and gas behemoth, and the Templeton Dragon Fund, a non-diversified, closed-end management investment company.
The Traunche Global Micro Fund charges fees of 1.5/20 with a $250,000 minimum investment requirement.
Prior to founding his firm, the 24-year-old Vaughan served as an equity analyst for Washington, D.C.-based Hovde Capital Advisors, an investment banking and alternative asset management firm focused exclusively on the financial services sector.
Vaughan said he is aware of the disadvantages of starting up a hedge fund at such a young age and he plans to wait until he can establish a solid track before marketing his fund to outside investors.