Sydney-based Prodigal Funds Management is carving out the equity capital structure arbitrage portfolio of the underlying model trade strategy from its flagship Prodigal Absolute Cayman Fund, and launching it as a standalone fund. Called the Equity Relative Value Fund, this will be a niche strategy profiting from the spread volatility of equity-based capital structures of large-cap companies, using proprietary models.
Prodigal is looking to launch with $50 million and is cautiously optimistic of getting to $100 million over the next six months. Soft-close will come at $500 million. Target returns are 15% plus and the model portfolio has