07/12/2011 Author: Elana Margulies

MD Sass-Macquarie redeems from Arcadia

MD Sass-Macquarie Financial Strategies Fund (FinStrat), a joint venture between MD Sass and Macquarie, will redeem its seed investment from Arcadia Capital Advisors by year-end after the three-year contract between the two expired the end of October.

Martin Sass, CEO of MD Sass, said New York-based FinStrat decided to withdraw its capital after Arcadia struggled to gather assets. “I have a high regard for Arcadia’s money manager, Richard Rofé, and enjoy a good relationship with him,” he wrote in an email. “The reason for withdrawing is the difficulty in raising assets for a start-up micro-cap activist equity-oriented fund in the current market.”

Rofé, managing director of Arcadia, told HFMWeek that following FinStrat’s decision, he has decided to return all other capital to outside investors by April. He is exploring other opportunities for Arcadia including seeking other strategic partners to back an activist investment fund with more concentrated positions.

HFMWeek previously reported on Arcadia opening up its fund to external investors, along with the launch of its maiden hedge fund.

MD Sass, which has seeded 31 investment strategies since 1972, is currently interested in adding hedge fund strategies with managers with proven track records in international equities, international credit and domestic corporate debt.