01/23/2013

Omega Poised to Bar Entry to New Investors

Look for Omega Advisors to cap its main hedge fund in the near future.

Marketers representing the New York firm have told investors it will stop accepting capital once overall assets reach $8 billion. At last count, Omega was managing about $7 billion as of December — up from $6.4 billion nine months earlier.

Much of the increase in assets has been driven by performance, rather than inflows. The flagship fund, Omega Overseas Partners, rose 25.3% last year, versus a 7.4% gain for the HFRI Equity Hedge (Total) Index. The Omega fund, which invests in large-cap equities, has delivered a 13.8% average annual gain since its inception in 1992.

But sources said the firm hasn’t made a final decision about closing off the fund to fresh capital. Founder Leon Cooperman will weigh several factors in the coming months, including “idea flow,” investment opportunities and performance.

Cooperman opened Omega in 1991 after leaving Goldman Sachs, where his titles included chief executive of the bank’s asset-management business. He runs Omega with another former Goldman partner, Steve Einhorn.

About half of the firm’s 30 employees work on the investment side. The most recent investment professional to join is Peter Boockvar, who arrived in recent weeks from Miller Tabak & Co. He supports Omega’s macro-strategy team.

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