New TMT hedge fund adopts the long-term approach Adam Parker

Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Druckenmiller's Duquesne Capital, where Parker was a senior analyst), and between 2008 and 2010, he was senior analyst at Force Capital Management.

Center Lake Capital LP, the fund, invests in securities believed to be undervalued primarily in the Technology, Media and Telecom (TMT), Consumer and Real Estate sectors. Parker describes it as a value-oriented, long-term focused, long/short equity strategy. On a cumulative basis, from inception in December'14 through the end of April, the fund is up over 20%. Most of the fund's capital (around $50m) is committed for three years, Parker tells Opalesque, and the fee structure is slightly lower as a result: Class A shares have a 1.5%-20% fee structure with a one-year lockup, and Class B shares have a 1%-15% fee structure with a three-year lockup, both subject to high-water mark.

"That enables me and the fund to take a longer-term approach to stock selection," he says. "It really provides more than a sufficient time period to let our investment thesis play out."

It is something that he has been preparing for and always wanted to do, he continues. "The time feels right now, both with the ongoing thematic tailwinds and the opportunity set on a longer-term basis."

The strategy has a focus within TMT, but is not exclusive to TMT; it is opportunistic in some other sectors as well.

Within the TMT sector, some large themes are driving changes and opportunity that have been around for some time, Parker explains. They revolve around the rise in the global adoption of mobile Internet by both co......................

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