BOSTON — Old Mutual Asset Management started a hedge fund of funds that invests with new and small managers. Managed by OM subsidiary Larch Lane Advisors, the Old Mutual 2100 Emerging Managers Fund will make investments with hedge fund managers with less than $400 million in assets under management and track records of less than three years, according to a registration filing with the SEC. Larch Lane managed $714 million in hedge fund of funds as of July 31, according to the SEC document.
The investment fee is 1.45%, in addition to management fees between 1% and 2% and performance fees between 15% and 20% charged by the underlying hedge fund managers. The minimum investment is $250,000. The tentative closing date for initial share purchases is March 1, according to the filing.
The new fund's portfolio management team includes Larch Lane CIO Mark Jurish; Stephen A. Gorman, director of research; and Diego Orlanski and Raul Guimaraes, both managing directors and vice presidents.
William J. Landes, CEO of 2100 Capital Group — the Old Mutual alternative investment subsidiary that owns 75% of Larch Lane — is also a portfolio manager of the fund, according to the SEC filing.
The fund's investment team set a tentative upper limit on the fund of $500 million, given the small size of the underlying managers, Joseph Demmler, COO of 2100 Capital Group, said in an interview.
The capacity limit is "a soft target" and might be changed, depending on market conditions or configuration of the portfolio, he said.