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AUNCHES
AGSCAPITAL GROUP
STRATEGYPIPEs/fixedincome/reserve equity financing FIRM AGS Capital Group MANAGER Allen Silberstein
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JONATHAN DUSKIN, formerly a founding partner of Prentice Capital Management, has set up Macellum Capital Management, and launched his maiden hedge fund, according to an investor document. The offering is a long/short retail and consumer sector-focused strategy. With between 40 and 60 positions, it will invest in small-to-midcap companies. The top ten positions will be between 40-45% of the portfolio while the top 30 positions will be between 75-85%. The fund has a capacity of $2bn of assets under management. Duskin, CEO of Macellum, was at Prentice Capital from 2005 to April 2008. At one point, the long/short hedge fund had approximately $2bn under management. From 2002 to 2005, he was a managing director at SAC Capital Advisors where he
worked directly for Steve Cohen in the Cohen Account. From 1998 to 2002, he was a managing director at Lehman Brothers. For the launch, Duskin has filled the team with industry execs from the retail sector. In addition, David Shapiro, analyst, joined from Scout Capital Management and Stonebrook Fund Management where he held similar positions focusing on the consumer and retail sectors. Jason Pyers, trader, was previously with Copper Arch Capital and Morgan Stanley. Craig Bernstein, also hired as an analyst, was previously an investment banker at Morgan Stanley, where he focused on consumer and retail. The new fund has 2/20 fees and quarterly liquidity. BTIG is the prime broker. There is no investment minimum. e.margulies@hfmweek.com
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The fund will act as a value investor looking for good growth companies with strong management teams in all public sectors. Meanwhile, AGS also launched a fixed income offering due to investor demand and the widening of corporate spreads. Silberstein said he is researching 80-100 credits and building positions in 60 names across 10-12 industries, with a focus on BBB with an average maturity of eight years. The objective is to return 350 basis points over Treasuries. Silberstein also debuted a reserve equity financing strategy in response to the current economic climate where companies are finding it tough to raise capital. This structure provides companies with the ability
to quickly and privately raise capital when needed at a competitive cost by issuing equity to AGS Capital in weekly tranches. Silberstein is partnering with different investment banks to source companies where he can directly invest using this strategy. At Visium, Silberstein structured PIPEs and registered direct investments. At its peak, Visium, a multistrategy hedge fund, had $2.5bn under management. e.margulies@hfmweek.com
23-29 July 2009
10 hfmweek.com