Bruce MacDonald is applying his expertise in managing liquid hedge fund-of-funds portfolios for a big university endowment to a new institutional mutual fund, the S1 Fund, managed by Simple Alternatives LLC.
Mr. MacDonald developed a separate account platform that increased the liquidity of the hedge fund portfolio of the $4 billion Charlottesville-based University of Virginia endowment. Mr. MacDonald was director of asset allocation and risk analysis for University of Virginia Investment Management Co., which manages the university's endowment.
Mr. MacDonald was given the opportunity to morph the hedge fund-of-funds model he built into a mutual fund format by Simple Alternatives' CEO James Dilworth. Mr. MacDonald joined the firm as chief investment officer in 2009.
The equity-oriented S1 Fund launched Oct. 4 and is the firm's first investment fund. The strategy invests in a concentrated portfolio of eight to 10 hedge funds, including Courage Capital Management LLC and Argonaut Capital Management Corp. The fund offers daily liquidity with no redemption notice required, and full portfolio transparency, Mr. MacDonald said. Another plus for institutional investors is a single, all-in fee of 295 basis points.