Protégé Partners is to make a significant investment in Mill Hill Capital, whose strategy will be focused on market-neutral relative value trading in US credit.
The team will seek to identify asymmetrical strategies across securitised and corporate bond markets.
It concentrates primarily on CLOs, corporate financials, corporate transportation, aircraft ABS, esoteric ABS, non-agency mortgage-backed securities, and credit indices.
The Mill Hill strategy will employ a combination of asset-level fundamental analysis, market-implied data-driven proprietary cash flow models identifying long/short opportunities across asset classes, as well as a systematic approach to risk and portfolio management.
The Mill Hill Capital investment team is led by David Meneret (pictured) who founded Mill Hill Capital in February 2015. Meneret is a 14-year trading and investment management veteran who most recently served as a senior portfolio manager for a market-neutral relative value credit hedge fund, the Macquarie Credit Nexus Fund, starting in 2012, and as head of securitised debt and financials trading at Macquarie from 2008 until 2015.
The team is composed of six professionals and an analytics developer, five of which previously worked together at Macquarie for more than five years.
“This investment represents the beginning of a long-term strategic relationship with Protégé Partners. This relationship will provide Mill Hill Capital the opportunity to gain critical mass and foster the growth of the firm. We will benefit enormously from the experience and expertise of such a prominent investor in emerging managers,” says Meneret.
“Protégé is extremely pleased to be a part of a very unique credit relative value opportunity focused on US corporate and securitised markets that will not only have alpha shorts, but a market-independent strategy. In a world dominated by beta, this is a refreshing change,” says Adil Abdulali, senior managing director at Protégé Partners.
“It is a true indication of the Mill Hill team’s confidence as well as their sensitivity to investors that they have joined us to pioneer an innovative fee construct in line with the paradigm shift in the hedge fund industry,” adds Jeffrey Tarrant, founder, CIO and CEO, and a member of Protégé's management committee.
New York-based Protégé Partners was founded in 2002 to focus exclusively on investing in small and emerging managers with an opportunistic approach to seeding.