|Larry Foley and Paul Farrell, two seasoned hedge fund veterans are planning to launch Bronson Point Partners’ flagship fund in January of 2010. Foley was a senior portfolio manager at Steven Cohen’s SAC Capital from 1994 to 2008, while Farrell was on the executive committee at Art Samberg’s Pequot Capital Management, where he co-managed Pequot’s Scout Fund Group.|
According to Reuters, despite the strong pedigrees of its founders, raising capital now may be difficult for Bronson Partners. SAC Capital and Pequot Capital have traditionally been two of the industry’s most prominent names. Although, the Pequot name lost significant luster when it was forced to shut-down earlier this amidst a lengthy SEC investigations.
Bronson Point’s principals, Foley and Farrell, have committed to investing at least $25 million of their own money into the new firm. Bronson Point will invest in US securities employing a long/short equity strategy. Depending on the length of time that investors are willing to lock their money into the fund, they will be charged between 17% and 20% performance fees ,as well as the industry norm 2% annual management fee.