Zak Capital Inc., Minneapolis, plans to launch a hedge fund and a small-capitalization equity strategy and will cap its flagship midcap equity portfolio by next year.
Suzanne Zak, chief executive officer and chief investment officer, said she is talking with a portfolio manager who would join the firm to launch the small-cap strategy next year.
A hedge fund strategy could be launched before then, she noted.
Ms. Zak, a former Investment Advisers Inc. portfolio manager, said that since she launched her firm in March, 20% of its assets have come from high-net-worth individuals who have shown interest in a hedge fund product.
Ms. Zak said she plans to limit the midcap equity strategy at $1 billion, a figure she expects to reach by next year.
Zak Capital attracted $350 million in its first six weeks in business, mainly from former IAI clients such as the Louisiana Municipal Police Employees' Retirement System, Baton Rouge; K&B Inc., New Orleans; and Lufkin Industries Inc., Lufkin, Texas.
