New York (HedgeCo.net) – New Canaan, Connecticut based Rangeley Capital LLC is set to launch its second event-driven fund on July 1. The new fund will launch with approximately $18 million in committed capital plus expressions of additional interest and that is after the firm’s first offering attracted $65 million in capital.
The fund will be managed by Chris DeMuth, Jr., founder of Rangeley Capital. The goal of the fund is to generate positive event driven returns that are independent of the overall market direction. The management fee is 1.5%. The incentive fee is 20% with a high-water mark.
According to information obtained by HedgeCo.net, the investment philosophy includes unlocking value through corporate events, looking to definitive events as catalysts to unlock value in a business. The company views this as one way to insulate their investments from unpredictable market movements.
A statement lifted directly from the company overview:
“We invest in companies that are undergoing a major change in the form of a corporate event (i.e. mergers, acquisitions, restructurings, spin-offs, rights offerings, etc.) where the market price and the intrinsic value of the company diverge significantly and the corporate event serves to unlock the value.”