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.
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%.
The ASA Managed Futures Fund is set to invest with portfolio managers that trade diversified portfolios of futures in the U.S. and foreign markets in order to capture passive risk premiums and actively profit from anticipated trends in market prices.
The fund’s sub-adviser, Guidance Capital, will be responsible for manager selection and already offers two funds of funds of its own. Guidance Blue Terrain LP invests in long-biased hedged equity managers in four categories–industry specialists, value-oriented, growth-oriented and growth at a reasonable price–while the firm’s first hedge fund, Guidance Green Terrain LP, invests in 18 managers in five distinct hedged strategies in the pursuit of absolute returns Previous HedgeWorld Story.
ASA will act as the administrator to each offering, while Sidley Austin Brown & Wood LLP has been hired on as legal counsel. ASA was founded by Douglas Dunn, who was the director of alternative manager research at Graystone Wealth Management in Chicago. Mr. Dunn is also the US$280 million firm’s chief investment officer and is a managing director of QED CapitalWorks LLC.
Last year, ASA announced its intention to build four strategy-specific funds of hedge funds Previous HedgeWorld Story. According to the company’s web site, ASA has developed fund offerings under the name Aspen Strategic Allocation Trust (ASAT) for qualified investors.