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Alternative Market Briefing

Emerging manager Fate Capital bets on economic recovery

Wednesday, March 31, 2021

Bailey McCann, Opalesque New York for New Managers:

The middle of a pandemic is probably not a moment when a lot of people think about starting a hedge fund. But for Fate Capital, the pandemic was an opportunity. By launching last year, the fund has been able to prove itself in an uncertain environment. As the fund approaches its one-year anniversary, the team at Fate feels confident in the resiliency of the strategy and the business.

"In a lot of ways, the pandemic was really a catalyst for us," explains Haris Khurshid, co-founder and Portfolio Manager at Fate Capital. "A lot of my friends had recently been laid off and they were invested, but they were invested in ETFs and they were looking for a way to generate income. So I started advising them on how to do that using options and eventually formalized it into a strategy."

Fate Capital's strategy is pretty straightforward. Khurshid has created a concentrated portfolio of value and growth stocks that he trades long and short with an income generating options overlay. The portfolio is rebalanced quarterly to remove under performers or take profits where appropriate. The strategy generates income by collecting the options premium from the stocks it owns.

The portfolio contains 10-20 names across all market caps. Khurshid says that they are looking for companies that have a clear runway for growth or some type of obvious catal......................

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