Some of the most elite, exclusive hedge fund managers now are within investment reach of even the smallest institutional investors.
Krusen Capital Management LLC, New York, offers small institutional and high-net-worth investors access to marquee hedge fund managers that normally would be out of their reach — like Paulson & Co. Inc., D.E. Shaw Group, King Street Capital Partners LLC, Moore Capital Management LLC and Brevan Howard Asset Management LLP.
By pooling the assets of multiple investors on its LionHedge investment platform, Krusen Capital is able to keep the minimum investment to $250,000 per hedge fund, said Charles B. Krusen, CEO of the firm. He noted that many large hedge funds require a minimum investment well above $10 million, which “creates too much single-manager concentration for many smaller investors.” Further smoothing the way for smaller investors, Krusen Capital charges an inclusive 50-basis-point fee, which compares very favorably to the standard 1% management fee plus a 10% performance fee charged by hedge funds of funds.
Krusen Capital and the investment platform attracted $100 million in its first year of operation. So far, Krusen Capital has attracted only a few endowments as clients, which Mr. Krusen declined to name. However, he said interest from institutional investors is running high.
“This is a potential solution for smaller pensions, endowments and foundations that want to access the best hedge fund managers,” he said. — Christine Williamson