Hedge Funds

Merrill Lynch alum to launch second fund


Prophecy Asset Management of New York is launching a more concentrated version of its flagship fund.

The firm's existing $50 million strategy employs a specialized technical analysis methodology to find and screen U.S. stocks. It launched in May 2001 and gained 3% last year and 6.5% in 2005.

The firm's new fund will invest globally and hold a maximum of 20 stocks. Founder Jeffrey Spotts has so far lined up $25 million of committed capital and has set a target of $300 million to close the fund.

Jeff Spotts

Prior to launching Prophecy, Spotts was lead manager