11/08/2010 Author: Elana Margulies

Acuity Capital launches corporate credit fund 

Acuity Capital Management, a Greenwich, Connecticut-based multi-strategy manager, has launched a
corporate opportunity fund.

The Acuity Corporate Opportunity Fund, which rolled out with $10m, is a long/short credit offering with convertible arbitrage added in. It has a total of 35 positions.

“The opportunity set right now, with respect to credit, is in corporations that have improved and strengthened their balance sheets and raised additional equity to try to take advantage of that via the high-yield credit markets,” said Howard Needle, managing member.

Needle and David Harris are the fund’s portfolio managers. Needle previously managed a proprietary global convertible portfolio at Greenwich Capital. Harris most recently worked at Banc of America Securities as a managing director and partner, managing convertible trading operations.

The fund has a $500m capacity with a $1m investment minimum, 2/20 fees, no lock-up and quarterly liquidity with 45 days’ notice. There is a 2.5% early termination penalty. Deutsche Bank and BNP Paribas are the prime brokers.