ATLANTA (HedgeWorld.com)–Aspen Strategic Alliance is planning on offering four closed-end hedge funds that would be registered under both the Investment Company Acts of 1933 and 1940.
According to documents filed with the Securities and Exchange Commission, the ASA funds will be managed mostly by Chicago-based Guidance Capital, which was hired as a sub-adviser. A registered investment adviser, Guidance will be paid a 0.5% management fee, while ASA is charging investors a 1.5% management fee.
ASA filed documents on the following funds: ASA Hedged Equity Fund LLC, ASA Debt Arbitrage Fund LLC, ASA Market Neutral Equity Fund LLC and ASA Managed Futures Fund LLC. The intent is to begin by raising US$50 million in each fund, according to the filing.
The ASA Hedged Equity Fund will invest in managers who maintain a net long exposure to the market and in hedged equity strategies that invest primarily in stocks, simultaneously buying long positions in certain securities and selling short positions in others. The ASA Debt Arbitrage Fund will invest in managers using convertible arbitrage and fixed-income arbitrage strategies wanting to take advantage of pricing inefficiencies.
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Managers who use balanced long/short equity strategies to achieve returns from stock selection while shielding against movements of the broad market will make up the portfolio of the ASA Market Neutral Equity Fund, according to the regulatory filing. An affiliate to ASA, QED CapitalWorks LLC, will be managing up to 40% of the fund’s assets in a portfolio account. QED, a registered investment adviser, will be paid a 1.7% management fee and an incentive allocation of 15%.