Steven McIntyre and Todd J. Stein have left billion dollar Q Investments of Ft. Worth, TX to launch their own long/short equity fund.
The two portfolio managers began trading Braeside Capital, based in Dallas, on 25 July.
At Q Investments, McIntyre specialized in distressed, value-oriented investments, while Stein co-managed a USD 100 million merger arbitrage portfolio and also played a key role in Q Investments' bets against distressed equities that it expected to decline.
With Braeside, McIntyre and Stein will use a bottom-up, value-oriented process to target stocks that have a market capitalization of USD 100 million or less. Their long portfolio will be concentrated in 10 to 20 positions that represent no more than 15% of the fund's assets. Their short portfolio will in particular target companies with accounting problems.