Another media-focused hedge fund, Mirador Capital Management, is due to hit Wall Street in September, employing a new research twist that it hopes will mine hefty returns out of traditionally low volatility sectors.
Veteran portfolio managers and analysts Seema Hingorani and Michael Parker have set up the estimated $100 million diversified fund, focusing on four key sectors: media and entertainment, consumer non-durables, financial services and oil and gas.
Founders say fund is distinct from many of its peers thanks to a unique research approach that emphasizes a network of private company research and executive contacts not subject to public market disclosure requirements.
Fund is considering an affiliation with a large private equity group to facilitate its private research strategy, similar to Bain Capital’s alliance with Brookside Capital.
Mirador hopes to spot media trends early by focusing heavily on consumer perception and demand research, using consumer tracking studies, focus groups and polling.
“In this highly competitive climate for public securities research, it’s hard for investors to gain a real information advantage,” said Hingorani, adding that Mirador’s media investments will include both large cap entertainment and advertising congloms as well as smaller broadcasters, publishing companies, cable, Internet, gaming and other consumer packaged media.
Hingorani previously was a general partner and portfolio manager of the $100 million Andor Media & Entertainment Fund. Prior to that she was an equity analyst covering media and Internet stocks at T. Rowe Price.
Parker, formerly a managing director and portfolio manager with Spears, Benzak, Salomon & Farrell, will track finance and energy investments.
Also joining the team is head trader John Hickey, formerly of SAC Capital Advisors, and CFO/COO Beckie Gallagher, who joins from Wyper Capital Management.
Announcement of Mirador coincides with debut of media/telecom-only hedge fund Rhombus Capital Management this summer (Daily Variety, June 10). Rhombus is helmed by former SAC media portfolio manger David Fiszel.