NEW YORK (HedgeWorld.com)–Mezzacappa Investors LLC is planning a new multi-strategy hedge fund that will be registered with the Securities and Exchange Commission.
The fund, called Mezzacappa Multi-Strategy Fund LLC, will be sold as a private offering with a minimum investment of US$2 million, a strong indication that Mezzacappa will be targeting family offices and institutional investors with the fund. Several recent fund filings targeted the lower strata of wealthy investors with investment minimums of US$25,000 and US$50,000. Mezzacappa officials couldn’t be reached for comment.
The fund will charge a management fee of 1% and a performance fee of 10% after a hurdle rate of the three-month LIBOR is achieved, according to the fund’s SEC filing. The fund’s investment objective is to beat LIBOR by 5% a year over several years, with lower volatility than broad equity and fixed-income indices, while keeping correlation to those indexes also low.
Strategies to be included in the fund are: equity market neutral; opportunistic long/short equity; hedged sector investing; short-biased; merger arbitrage; distressed securities; convertible arbitrage; relative value arbitrage; multi-strategy arbitrage; loan origination; global macro; market timing; and fixed-income arbitrage, the filing states.
SEI Investments Global Funds Services, Oaks, Pa., was hired as administrator, while SEI Private Trust Co. was hired as custodian. Tannenbaum Helpern Syracuse & Hirschtritt LLP, New York, is the legal counsel, and Anchin, Block & Anchin LLP, New York, is the fund auditor.
Damon Mezzacappa is the founder and the managing member of Mezzacappa. Other executives working on the fund are: Francis J. Conroy, chief financial officer of the firm; Robin Willoughby; Darcy Bradbury; John D. Mills; and Lenore A. Petteruti.
Mezzacappa managed more than US$800 million as of June 30, primarily in hedge funds of funds, according to the filing.