Rothschild Groups’s U.S. asset management business and hedge fund operator Larch Lane Advisors have announced a new joint venture in 40 Act Funds to be called the Rothschild Larch Lane Management Company.
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A new company which will act as an investment advisor for a multi manager liquid alternative 40 Act fund that will employ a risk balanced approach to portfolio construction has been been formed in partnership between Rothschild Asset management and Larch Lane Advisors LLC. It will be called Rotschild Larch Lane Management.
The United States Investment Act of 1940 created a pooled investment vehicle which can only be offered by a registered company and which has become known as a 40 Act Fund. There are two broad categories for this type of investment: open end and closed end. All such funds are registered as securities with the SEC and as such are considered public offerings.
The 1940 act applies to companies that primarily invest or trade in securities and/or offer their own securities to the public. Hedge funds can sometimes fall under the act’s definition of an investment company, but may be able to avoid the act’s requirements by requesting an exemption under its sections 3(c)(1) or 3(c)7.
Based in New York, Rothschild Asset Management Inc handles various investments including both large and small cap U.S. Securities and deals with a wide range of clients from corporations to private endowments and foundations. It is one of four main divisions of the Rothschild Group, the others being global financial advisory, wealth management and trust and merchant banking.
With headquarters in Rye Brook New York, Larch Lane Advisors is an investor and creator of hedge funds founded in 1999 by its current CEO Mark A. Jurish and which operates a number of capital investment firms.
The two firms believe that they will succeed based on their combined experiences as portfolio managers and investors.
Mark A. Jurish said in a statement, “It’s an exciting opportunity to work with Rothschild. The combined experience of Rothschild and Larch Lane creates a partnership that is uniquely positioned to offer investors a liquid alternatives strategy designed to provide diversification of asset classes and investment styles. We believe this will be a compelling solution among the current liquid alternatives 40 Act offerings”
Michael Tomasco, the co-head of Rothschild Asset Management, said of the venture, “This is a great milestone for Rothschild and an important step in developing our alternatives investment business in the US. We’re thrilled to partner with Larch Lane on this initiative, given their reputation and years of innovation in alternatives solutions.”
Rothschild brings complementary global research of liquid hedge fund managers and distribution. Larch Lane is a pioneer in early stage hedge fund investing, hedge fund seeding, and is a well-known fund of hedge funds investor in the US, the company said in a press release.
The partners have already filed the necessary filing forms for the 40 Act with the SEC.