Hedge Funds

Tepper backs small-cap activist strategy


Eureka Capital Partners is readying the launch of a small-cap activist fund with $10 million in anchor capital from David Tepper's Appaloosa Management.

Eureka Capital Partners is a Newport Beach, Calif.-based advisory firm, providing advice on mergers and acquisitions, financial restructurings and capital raising. Tepper got to know the Eureka group because the firm provided strategic advice on Appaloosa's highly profitable investment in Beverly Enterprises, a Fort Smith, Ark.-based nursing home operator. Appaloosa cleared at least 40% in profits when it sold its 3.2% Beverly stake.

The new portfolio, Onion Creek Fund, is expected to launch in December. The