Thursday, 31 July 2014
Last updated 3 hours ago
Jan 12 2007 | 10:55am ET
Michael Bois, former portfolio manager of Timberline Partners, last week launched the Bois Fund, an equity long/short vehicle.
The hedge fund’s targeted exposure is market neutral to 80% net long, according to Bois, who said the fund is cap agnostic and is more concerned with a company’s liquidity. “In the long book, we look for insider transactions and want to see key people in the company making purchases with their own money in the open market,” he said.
“We also look at the history of management’s ability to create value by generating returns on the invested capital that they have that are higher than the cost of capital. We need to see a sufficient spread between where the stock is trading in the open market and the appraised value. If a company was taken private has a private market value of $100 per share and we can buy it at $60, then we’re interested.”
Bois, who ran the Timberline fund, also a long/short offering, from 1998 through 2003, said the period from 2000-2002 was really “important” and “informative” with respect to risk management, which has helped shape his current fund’s risk management measures. “We may take some relatively concentrated positions but are very careful about getting out of situations that just are not working for us. So there is an emphasis on risk management here,” he said.
The fund charges a 1% management fee and 20% performance fee, with a $250,000 minimum investment requirement.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…