--Corrie Driebusch
Meadowbrook Capital Management is changing tack in marketing its Meadowbrook Beta Neutral Fund. The firm opened the long/short equity all-cap fund to outside money a year ago but has had few takers. Afsin Alp, portfolio manager, said the firm had been targeting U.S.-based investors and using a third-party marketer.
Alp said he now recognizes that overseas investors are more willing to put money back into the market more so than their U.S. counterparts, most recently exemplified by China Investment Corp.’s plans to put $500 million into The Blackstone Group’s hedge funds. Alp leaves next week for a trip to his native Turkey to take advantage of family and friend connections to speak with corporations and sovereign wealth funds.
As part of the firm’s new marketing push, Meadowbrook is intent on increasing its transparency—starting next month the firm will be doing monthly conference calls with its investors.
The firm also is focusing on high-net-worth individuals, and is working with private wealth management units of big banks to woo them. “Those are sticky assets,” he believes, adding that if a high-net-worth individual understands that his firm’s strategy is long-term investing in companies rather than short-term stock picking they will stick with him through an occasional down month. For now, the fund is continuing to use a third-party marketer.
Alp declined to provide assets under management, saying only that the firm hopes to raise an additional $50 million in the next year. If that doesn’t happen Alp said he will consider a strategic partnership. The Beta Neutral Fund was up both last year and since inception. The fund takes about 50 positions overall, investing both long and short in high-margin companies, such as those in the medical device or software sectors.
This article was originally published in Alternative Investment News.