07.03.2014

Exclusive: Briargreen Capital eyes September launch

Briargreen Capital Management, a two-year-old Texas manager, will launch a “macro-influenced” long/short equity fund in September after its founder wiated for suitable conditions to materialise, HFMWeek has learned.

The Austin-based firm, led by Karthik Srinivasan, who previously spent five years at Santa Monica-based Giovine Capital Group, will invest in US-listed small/mid-cap securities via the Briargreen Capital Fund.

It focuses on four sectors: technology, media and telecoms; energy; industrials; and consumer discretionary. Srinivasan, CIO, said he waited over two years to launch the strategy as a hedge fund, until the market presented ample opportunities to generate alpha through shorting.

“On the short side, it has become a better environment to find opportunities because the correlation between sectors and the overall market have come down starting in the third quarter of 2013,” he said. “Fundamentally, [mid-cap equities] are in the sweet spot of their growth cycles in terms of their corporate lifecycle because they have well-developed business models with diversified revenue sources.”

Briargreen plans to launch an offshore vehicle in one year’s time. Prior to Giovine, Srinivasan worked for Yahoo, and was an analyst for Fort Point Capital and Minot Capital Management.

Briargreen’s service providers include Concept Capital as the prime broker, EisnerAmper as the auditor, Opus Fund Services as the administrator and Cole-Frieman & Mallon as the legal counsel.

In separate launch news, Heller House, a Miami-based value-oriented investment manager, will launch an offshore version of its flagship event-driven Heller House Opportunity Fund next month.

The offshore fund will run alongside the onshore vehicle, a source said. Heller House was formed by Marcelo Lima in September 2010, before which he was an analyst at New York-based hedge fund manager T2 Partners.

The onshore Heller House Opportunity Fund has returned 17.2% annualised since inception. The firm declined to comment.