New York-based Prescience Investment Group has recently launched its first hedge fund, an unlevered long/short vehicle that will invest in equities and bonds.
Firm founder and managing partner of the Prescience Partners Fund, Eiad Asbahi, said he seeks to generate unconventional returns by applying a value-oriented, private equity analytical approach to investing.
“How we manage the money all comes down to our view on an optimal portfolio duration,” Asbahi told FINalternatives. “When increasing duration, our bread and butter are GARP (Growth At A Reasonable Price) equities with highly defensible business models. Since we focus on the long term in this space, we’ll conduct an immense amount of due diligence before we’ll commit any capital, but when we find a screaming mispricing in a great business, we’ll commit big.”
Asbahi said the strategy can handle up to $500 million, but the fund—which began trading on August 1—will hold several closings as it grows in order to maintain quality.
Prior to founding Prescience, Asbahi was a high yield bond, distressed debt and special situations analyst for several years with a hedge fund managed by Commonwealth Advisors where he was responsible for idea generation and the analysis of instruments throughout the capital structures of over-levered companies and special situations across numerous industries. He also worked in a similar capacity as a consultant with hedge fund manager Cohanzick Management and later engaged solely in equity analysis as a consultant with Kinderhook Partners.
Asbahi is joined by N. Cyril Thottam, who serves as the chief operating officer of the firm. Prior to joining Prescience, Thottam was a corporate strategist and strategy consultant with various organizations such as Morgan Stanley, Lehman Brothers, and IBM.
Morgan Stanley Smith Barney serves as Prescience’s prime broker and custodian, Michael J. Liccar & Co. serves as its third party administrator and RSM McGladrey serves as its auditor.