Ridgewood, New Jersey-based Point Clear Value Management has recently launched its maiden hedge fund.
The firm has been running partner money in its special situations hedge fund since April 2008, and is now opening the fund up to outside investors.
The fund, which manages $5 million but has the capacity to handle $100 million, has returned 11.6% since inception through September, compared with a decline of 19.7% for the S&P500 Total Return Index. Year-to-date the fund is up 24.6% versus 19.3% for the S&P500 Total Return Index.
“What makes us unique is our intense research process. We literally get out there and kick the tires. We talk to customers and suppliers. We talk to managers. And if we find anything we don’t like, we turn away,” says Andrew Cash, portfolio manager for the fund, Point Clear Value Partners.
Cash, a 20-year veteran of Wall Street, cut his teeth on the sell-side, mostly with Paine Webber. Most recently, Cash was U.S. research director for UBS.
During his career, Cash has been named to Institutional Investor’s All American Research Team 10 times, and he emphasizes that Point Clear does all of its research in-house.
“We’ll invest in any size company as long as we think there is extraordinary opportunity,” Cash told FINalternatives, adding that the portfolio will be concentrated—focusing on 10-15 stocks. “Our investment process is an extension of what I did on the sell-side, finding ideas that are undervalued… We tend to migrate toward sectors that have been beaten up.”
Cash is joined by partner, Richard ‘Chip’ Murphy, a former Bear Stearns managing director who ran his own trading firm—CJM Securities—from 2000-2008. Murphy will run the trading and operations for the hedge fund firm.