14/07/2010 Author: Elana Margulies

Exagroup wins first managed account hire 

Exagroup, the Seattle-based hedge fund manager, has received its first managed account allocation from a fund of hedge funds (FoHF) in New York, HFMWeek has learned.

The managed account structure executes the same strategy as the flagship Exagroup Omega Fund, an options equity strategy rolled out in June 2009. Specifically, Exagroup's portfolio evaluates the fundamentals and technicals of each company to determine attractive spike prices to enter positions by underwriting options. It is diversified across a large number of positions and sectors to locate pockets of volatility and capture option premium.

“Heightened volatility increases the premium received via options, increasing returns,” said Istvan Fogassy, managing partner. “In this volatile market the equities are all over the place, resulting in volatile performance if held in one's account.”

Exagroup has received investor interest for another potential managed account allocation, once the fund has built up a longer performance track record.

Kevin Lennil is the head portfolio manager of the fund. Before forming Exagroup, he was involved in several ventures, including the development of Shopdango.com, an internet retailer.

Exagroup's hedge fund structure has a $100,000 investment minimum, 1/20 fees and a quarterly lock-up. Investors can also redeem quarterly.