3 team up to seed hedge funds

Atlantic Asset Management, Montage Asset Management and Palmer Square Capital Management announced a strategic partnership Thursday aimed at making seed investments in hedge funds.

The three are general partners in a seed fund that held its first closing last month, according to a news release.

In a telephone interview, Chris Long, managing director of Palmer Square, declined to specify how big the fund is, but said it will look to invest between $25 million and $50 million apiece in a diversified portfolio of emerging hedge fund managers — including those focused on long-short, credit and global strategies. In addition, the fund will target experienced managers spinning out of investment banks or established hedge funds.

According to the news release, the fund will be anchored by two unnamed limited partners: a large institutional fund and an ultra-high-net-worth family.