14/12/2011 Author: Elana Margulies

Texas Business rolls out flagship fund

Texas Business Strategies, a newly formed Dallas-based registered investment adviser, has launched its flagship hedge fund after initially running the strategy in a number of separately managed accounts.

The Stanchion Fund, which rolled out with internal capital along with a commitment from a high-net-worth individual, is a long-biased strategy that invests in a small basket of large-cap US multinational companies.

“We find that the low-debt multi-nationals are well positioned to tap into growth in emerging markets,” said Daniel Dower, president.

“Many managers focus on attempting to gain information advantages on small-caps, but we believe we achieve superior returns with much less risk in the large-cap space by using active management based on relative fundamental analysis.”

The Stanchion Fund, which maintains 15-25 positions in 5-10 companies, will target US high-net-worth individuals, family offices and funds of hedge funds to reach its initial $5m capacity in the next year.

Previously, Dower was CFO for Chi Investment Corp, a Dallas-based private real estate firm. The fund has a $25,000 investment minimum, 1% management fee and no performance fee. There is no lock-up.