This $250 million asset manager is reviving a short-selling hedge fund as it bets on a coming downturn

Core Viewpoint - Little Harbor Advisors is reviving a short-seller-only strategy in anticipation of a market correction, aiming to provide institutional investors with opportunities to invest on the short side of the market [2][5]. Group 1: Strategy Overview - The firm, managing $250 million, believes the current market conditions present an opportune time to reintroduce this strategy, which previously thrived during the financial crisis [2][5]. - The strategy initially launched in 2007, grew from $6 million to over $100 million during the global financial crisis, and was closed in 2011 after achieving significant returns [4][5]. Group 2: Fund Structure - The new strategy will allocate assets to four external short-selling funds: Orso Partners, Kingsford Capital, Contrarian Alpha Management, and Teixeira Partners, along with three internal portfolio managers [6][7]. - Each external fund will receive a quarter of the total assets, and the firm expects to raise more than $100 million for this strategy [7]. Group 3: Investment Requirements - The minimum investment for participation in the fund is set at $5 million, while institutions seeking a separately managed account must invest a minimum of $25 million [8]. Group 4: Future Expectations - Similar to its first iteration, the strategy is expected to have a "finite life" that capitalizes on the anticipated market correction [9].