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Bailey McCann, Opalesque New York for New Managers: $360 million, Seattle-based hedge fund Acuitas Investments has launched a new micro-cap long/short equity fund targeting $400 million. The vehicle will be a multi-manager fund comprised of emerging managers with concentrated micro-cap portfolios.
"We think that if you look over the very long term, micro and small-cap stocks perform as well or better than large-cap stocks," Acuitas managing partner Chris Tessin tells Opalesque. "We are a very research-oriented firm and we bring that to this universe when looking for managers and certain exposures."
Tessin says micro-cap is an underfollowed area of the market that lacks institutional capital and analyst coverage, but can provide uncorrelated returns relative to large-cap equities. According to the firm, of the estimated 5,200 publicly
traded securities with market caps under $1.5 billion and at least $500,000 average
trading volume traded globally, over 60 percent have no sell-side analytical
coverage. Acuitas believes this gives skilled professional investors an opportunity to
generate an informational advantage that will result in strong returns.
"We think the risk within the micro-cap universe is largely misunderstood," Tessin says. "We don't see a significant risk difference between micro and small-cap stocks."
Acuitas will be limiting the capacity of the fund ...................... To view our full article Click here
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