Hickory Lane Capital launches multi-sector equity hedge fund with Investcorp-Tages as anchor
Hickory Lane Capital Management, a New York-based fundamental equities-focused investment manager, is tapping into opportunities across the TMT, industrials and consumer sectors with a new long/short equity strategy, which has launched with USD100 million in assets anchored by asset management seeder Investcorp-Tages.
Established in July this year by former Brahman Capital managing director and partner Joshua Pearl, Hickory Lane trades technology, media, telecommunications, industrials and consumer stocks on a long and short basis using a mix of long-term fundamental stock selection and top-down sector analyses.
The fund invests in stocks from a balance sheet perspective, with the investment portfolio taking account of how capital structure affects equity value, with short positions used to hedge idiosyncratic risks in the long book.
“The pandemic has dislocated many of our sector focus areas, thereby creating attractive investment opportunities,” Pearl said of the launch.
Prior to his time at Brahman, Pearl was a director at UBS Investment Bank where he structured high yield financings, leveraged buyouts, and restructurings. Earlier he was an investment banker at Moelis & Company and Deutsche Bank.
Investcorp-Tages - a global multi-manager investment firm established in May this year as 50/50 joint venture between Investcorp and Tages Group – has provided an anchor investment for the fund, which also includes commitments from a global consulting firm, family offices, fund of funds, and peer fund managers.
“Investcorp-Tages’ commitment allowed us to recruit top talent, select best-in-class service providers, and raise capital during a highly volatile period,” Pearl said.
Commenting on the launch, Mark de Klerk, head of seeding at Investcorp-Tages, pointed to Hickory Lane’s “deep expertise in fundamental equity analysis” across the TMT, industrial, and consumer sectors.
“We believe there are many opportunities to capitalise on mis-priced assets in the market and that Hickory Lane is well-positioned to enhance value with its robust investment approach,” de Klerk said.