CHARLOTTE, N.C. (HedgeWorld.com)–On July 1, Bank of America Corp. will launch a registered long/short equity hedge fund.
The BACAP Technology Fund LLC will be subadvised by Alkeon Capital Management, which is the same firm that handles the technology portion of a CIBC World Markets registered hedge fund launched earlier this year. (Previous HedgeWorld Story)
Alkeon’s strategy will be to invest 80% of the fund portfolio in long and short positions in U.S. and non-U.S. companies engaged in developing, producing or delivering technology-related products or services and companies that may benefit from or be disadvantaged by technology-related products and services, according to the filing with the Securities and Exchange Commission.
Companies that derive significant revenues from businesses Alkeon believes will be affected by technological events and advances will also be part of the strategy. Some of those events may include: deregulation of global markets and the need for upgrading existing network infrastructure; increased corporate spending on information technology; and pharmaceutical advances resulting from biotechnological innovations.
Alkeon’s Panayotis “Takis” Sparaggis will manage the fund relying on investment research and fundamental analysis of company financial data to find investment opportunities. Before founding Alkeon, Mr. Sparaggis was associated with CIBC World Market Corp. as a managing director for Oppenheimer Investment Advisers, according to the fund filing.
As subadviser, Alkeon will be paid 0.25% by BACAP Advisory Partners LLC, the adviser to the fund that is headed by Michael Kenneally, who is named as the manager of the fund in the filing.
The investment minimum for the fund is $150,000. Investor qualifications stipulate that individuals and spouses need to have a combined net worth of more than $1.5 million before investing in the BACAP fund. The offering itself totals only $10 million, according to the filing.
While Bank of America is touting the offering as a mutual fund; fees are more hedge fund like with a 1% management fee and 20% incentive fee. The fund will be distributed through the Bank’s brokerage arm Banc of America Securities.