Texas-based value specialist LRT Capital will roll out its second hedge fund offering on 1 January.
The LRT Market Neutral Strategy will have low net dollar exposure and zero beta exposure to the S&P 500.
The new offering follows a similar asset-selection process to LRT’s existing LRT Economic Moat Strategy fund, with a different approach to portfolio construction that is “focused on minimising volatility and market correlation through index-based hedging and optimisation techniques”, according to an investor letter seen by HFM.
The moat strategy was up 5.1% in November and has gained 72% YTD.
The new strategy, launched in response to investor demand, targets those “concerned about the extended bull-run of the stock market, or simply want[ing] a low-net-exposure strategy”.
Founded in 2012 by Lukasz Tomicki, LRT has seen its assets more than double since the beginning of the year, currently managing around $30m, and has recently added a head of business development and an investment analyst.
Head of business development Ben Turk joined in October. His CV includes investment roles at $1.4bn private equity firm Insight Equity and in the natural resources group at Deutsche Bank.
In November, economist Gulseren Mutlu joined as senior equity analyst. She joined with more than 10 years’ experience teaching economics at universities including Stern School of Business, McCombs School of Business, City University in Hong Kong and Bogazici University.
The firm plans to hire another analyst to start in early 2020 and will add a CFO as assets continue to grow.