West Palm Beach (HedgeCo.Net)- Southridge LLC, a New York financial holding company, is launching a "not as you know" market neutral fund to add to their portfolio of funds.
The new fund, Southridge Market Neutral US LP has the capacity to grow to $1 billion, the fund will have a $500,000 investment minimum, 2/20 fees and monthly liquidity.
Ten years in the making, Southridge Market Neutral is designed and managed by Andrew G. White, CFA. "We’re quite encouraged that our new fund strongly outperformed during first half of 08, despite being a start-up in truly hostile markets. We’re even more optimistic for the future." White commented.
“We launched the fund as quantitative market neutral, but not as you know quant or market neutral," White said, "High return with low downside risk is possible if you first focus on return using objective trend-following in US large/mid cap stocks and then employ risk control including NO leverage.”
Focusing on what works and why, the strategy is objective trend-following instead of subjective mean reversion. Investing in US large/mid caps (100% long / 100% short), the fund strategy unusually uses no leverage or factor hedging. Nonetheless, risk/return profile is similar to 6:1 leveraged market neutral funds, but with a vastly smaller market footprint and black swan exposure.
Stephen Hicks, Southridge’s CEO, said, “As we leverage our twelve year track record at Southridge, we look forward to further broadening our product line for our investor base and view the Southridge Market Neutral US strategy as an integral part of that mosaic.”
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