Tue, Oct 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers May 2014

Fund Profile: Eigenvector Capital launches first fund, a systematic value-based strategy, in "ideal time"

Dr. Nathan Rex spun out of a multi-billion dollar family office to form, together with Sean Ballard, Eigenvector Capital in Stamford, CT on 1st April.

Dr. Rex used to manage systematic strategies while serving as CIO of TRQ Analytics, the internal fund of the family office now named Kokino. He began the proprietary research into a portfolio modeling that became the equity portfolio's backbone for the family office; the subsequent long-only portfolio launched in June 2008, and despite the unfortunate timing, it outperformed all classes of hedged strategies that year. When a short component was added in 2011, the family office allocated capital and a long/short portfolio was launched.

Ballard and Rex started preparing their spinout last year, with the family office as their anchor investor.

Dr Rex's strategy is at the heart for their new long/short equity fund, EvC Alpha Fund, LP, which has just started with $25m in AuM, and is now open to new investors.

"We are a model-oriented strategy, which has six years of track record," Sean Ballard, CEO, tells Opalesque in a recent interview. Prior to Eigenvector, Mr. Ballard was a Director at Palestra Capital Management, which he joined before its launch in 2012.

The two managers, who have known each other for three years, feel now is the right time to become independent.

"Right now we think it's probably the ideal time for the strategy that we employ," Nathan Rex, CIO, explains. "On the long side of our portfolio, we focus on value names, stocks that are cheap relative to what they earn. And on the short side, we focus on stocks that are over-valued relative to what the company can earn."

According to the fund's presentation, academic research confirmed what they have experienced managing a discretionary portfolio: over time, value stocks outperform the broader market. Their propri......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Sparx optimistic about outlook for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: According to SPARX, there are causes to be optimistic about the outlook for the Japanese market and the country's economy in general. Sparx Asset Management is a Tokyo-based asset manager, part of