Launches & Closures Hedge Funds

Southridge's quant push


Southridge, an asset manager and financial services company in Ridgefield, Conn., plans a sweeping foray into hedge funds, with a goal of raising $1 billion by 2010 by employing an unusual slant on a quantitatively driven market-neutral strategy: no leverage. The firm, which currently manages $200 million, recently launched its first vehicle of this type, the Southridge Market Neutral fund.

Andrew White

Southridge expects the nascent portfolio to produce the double-digit returns one might expect from a strategy employing leverage as high as six times. The strategy is expected to accomplish this by holding concentrated