Two portfolio managers from Cowen & Co. started their own hedge fund firm specializing in health care and technology securities.
Steven Abernathy and Gary Leet joined with Bruce Johnson, a former technology consultant with Andersen Consulting, to start The Abernathy Group. The New York firm manages three U.S.-based hedge funds and plans to open an offshore hedge fund based in Dublin or Nassau.
The domestic funds include an aggressive growth fund, using leverage and short selling; a moderate growth fund, which will use short selling but no leverage; and a conservative growth fund, which will serve as a balanced option and will invest in both equity and fixed income.
The offshore fund will mimic the aggressive growth domestic fund, said Mr. Abernathy.
Funds will use Abernathy's Interactive Investing approach, which includes clients as part of the research process to bolster the fundamental security analysis. Abernathy Group has $110 million under management from clients who followed the principals from Cowen, said Mr. Abernathy.
The clients are individuals in the health care and technology fields and pension funds of the individuals' medical groups and technology companies, he said.
Mr. Abernathy's and Mr. Leet's duties at Cowen & Co. have been assumed by other staff members.