Maverick Capital’s Lee Ainslie has launched a new
hedge fund – Maverick Select.
|| Maverick Capital's Lee Ainslie; photo:
The new fund was initially launched on July 1 mostly with
internal money and began accepting outside money at the
beginning of this year. According to sources, Maverick plans to
cap the assets for this fund at around $1 billion.
The fees are pretty steep. If an investor agrees to lock up
money for one year, the fund charges a 2.25 percent management
fee and 22.5 percent performance fee. If the investor commits
to three years, the fees drop to 2 percent and 20 percent.
"It is an intriguing product," says a hedge fund investor
who has looked at the prospectus but has not committed capital
at the moment. "It makes sense."
Ainslie is one of the prominent Tiger Cubs who previously
worked for Julian Robertson's Tiger Management. Ainslie, along
with Sam Wyly, launched Maverick in 1993. His flagship Maverick
Fund was up 16 percent in 2012 after losing 14.7 percent in
2011, while Maverick Levered surged 32 percent last year after
losing 30.7 percent the prior year.
Maverick Select will be a concentrated fund, containing 15
to 20 longs and 15 to 20 shorts. All of the stocks will be
drawn from the overall Maverick portfolio. They will be those
most highly ranked by MavRank, the firm’s
proprietary MavRank quantitative stock analysis
system, from a return and risk perspective, and all
subject to liquidity and availability requirements.
The fund will be capped at $1 billion, principally so it
does not impact the core funds, say those familiar with the
product. Ainslie has stressed that MavRank is not simply a
stock-picking system. Rather, he pointed out in his 2011
year-end client letter, it takes the stocks that
Maverick’s fundamental analysts have already
placed in their portfolios and ranks them from a potential
return and risk perspective.