Iron Capital Advisors, an Atlanta-based manager, has launched its maiden hedge fund structure after running the strategy on a managed account basis for four years.
The Gateway Fund, which launched last month with seed investment from a US investor, is a concentrated equity strategy with a long bias.
Chuck Osborne, managing member, said he decided to launch a concentrated equity strategy since he believes the market environment from the last decade has given stock pickers ample opportunities to profit.
“Going forward, the market may provide lower returns than it has in the past as many are saying, but that does not mean every stock is going to just crawl along,” he said. “It means there will be a bigger difference between the winners and losers, and if you can do a good job of picking the winners or at least avoiding the losers, you can still provide solid returns to your clients.”
The fund has a $250,000 investment minimum, a fee of 50 basis points and will take a 25% performance fee over the hurdle rate. There is no lock-up and annual liquidity. BTIG is the prime broker. The fund will donate 20% of its performance fee to charity.
The managed account’s four-year track record as of 30 June is up 6.7%, while the S&P 500 is down 11.42%.
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