Hedge Funds

Tontine starts low-vol fund for midcap market


Jeffrey Gendell's $4 billion Tontine Capital Management inaugurated its planned low-volatility fund in September with an undisclosed amount of capital.

Tontine 25 was first opened to the firm's existing investors, who have the option to invest fresh money as well as to reallocate capital from the firm's other funds: flagship Tontine Overseas, small-cap fund Tontine Capital and small-cap financials fund TFP. Interest was expected to be strong given the fund was set up in response to a request from investors for a low-volatility vehicle.

Tontine has said that to give existing investors plenty of time to assess the new fund,