•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

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