Aetos Capital Registered Funds Take Off

Among more traditional hedge fund equity strategies, Aetos will focus on long/short and equity market-neutral strategies. The long/short strategies vehicle invests in funds that combine long positions in undervalued common stocks or corporate bonds with short positions in overvalued common stocks or corporate bonds. The market-neutral fund allocates to funds that are neutral to the market with respect to movements in stock and bond markets and also in position size and industry exposure.

Each fund of funds will raise US$50 million, with a minimum investment of US$1 million, according to the Aetos’ Aug. 26 Securities and Exchange Commission filing. Aetos currently manages US$420 million in assets in both segregated and commingled asset accounts. The firm initially filed its funds’ prospectuses with the SEC early this year.

Aetos began building up its hedge funds of funds capabilities in late 2001, hiring two university foundation executives. Jeffrey J. Mora joined in November from Northwestern University, while Anne Casscells, chief investment officer at Stanford Management Co. left Sept. 2001 to join the funds of funds startup in its San Francisco office.