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January 18, 2017  

Investors Getting Another Shot at Cat Rock

Alexander Captain’s Cat Rock Capital is opening the doors to outside investors for the first time since just after its inception.

The Cat Rock Capital Master Fund likely will meet with pent-up demand, considering that the long-biased equity vehicle gained 16.8% last year. That compares favorably with a 12% increase for the S&P 500 Index and a 7.2% gain for the HFRI Equity Hedge Fundamental Value Index.

Captain, formerly a partner and portfolio manager at Tiger Global, launched the Cat Rock fund in August 2015, but soon after stopped accepting outside capital. The vehicle, which has remained open for existing limited partners who wanted to increase their stakes, currently has $375 million under management.

“We have re-opened our fund, but will close again once capital reaches $500 million,” chief financial officer Daniel Levinson wrote in a Jan. 6 letter to prospective investors.

The Greenwich, Conn., firm takes a fundamental-value approach to picking stocks, with a concentrated portfolio of 10-15 positions, including a handful of shorts.

“Our portfolio continues to gradually shift away from large, widely covered companies to smaller, less-well-known businesses as we continue to source new opportunities that were not actionable to us in previous roles at larger funds,” Captain wrote in a fourth-quarter performance review.

Captain spent six years at Tiger, which reported about $24 billion under management at the start of last year. Prior to that, he was a private equity analyst at Blackstone.

Before joining Captain in 2015, Levinson was a partner and chief financial officer at distressed-debt manager Atalaya Capital. He also has worked at Oracle Partners and distressed-debt specialist Morgens, Waterfall, Vintiadis & Co.