It’s a big day for the team over at Bull Path Funds!
With the the v2 launch of their website (created by none other than the HedgeCo Hedge Fund website team) they have cracked the lid off of their unique Long/Short strategy Mutual Fund.
The Bull Path Long Short Fund adopts a strategy developed and run by Bull Path Capital Management since 2002. During that time, the strategy has consistently delivered returns above its benchmark by utilizing a fundamentally-driven, bottom-up investment process that does not employ leverage. Focused on US mid-capitalization stocks, the strategy seeks out companies with recurring high margins, revenues or strong franchise positions while also favoring issues with strong barriers to entry and successful, entrepreneurial management teams.
Wall Street Journal discusses the “unusual” aspects of converting a Hedge Fund into a Mutual Fund, in an interview with Kaimowitz, discusses why they made the change.
Kaimowitz, like many other hedge-fund managers, suffered dearly last year, but also experienced his share of redemption. The fund’s loss is not something he was happy with, but he said it is in line with other hedge funds. Bull Path’s long-short hedge fund, launched in 2002, had $530 million at its peak and $473 million in January 2008, but is now down to just under $100 million.
“Every single hedge fund on the planet had redemptions,” Kaimowitz said. “We did not have lock-ups, and we tried to do the best we could to be investor-friendly.”
He contends that this wasn’t a factor in converting the fund. There now is pressure on hedge funds to lower fees and lighten up investment strictures, while sharing more portfolio information with investors, Kaimowitz said.
“A mutual fund addresses these issues quite well,” he said.
It has been a pleasure to work with the team at Bull Path Funds, we wish them all the best with their new funds!
