The latest shock entrant to the world of hedge funds is a musical man. Boyz II Men – remember them? That ’90s R&B group responsible for such numbers as ‘End of the Road’, ‘I’ll Make Love to You’, ‘Water Runs Dry’, and ‘One Sweet Day’, a duet with Mariah Carey.
FinAlternatives reports (via Dealbreaker) that their former producer-turned-fund manager, Dennis Ross, is launching a hedge fund this summer. The PBGB, a long-short fund, aims to have $20m in initial capital and will focus on investing in US technology and biotech healthcare.
“The best opportunities are going to be in technology, as the frequency of innovation has been replaced with the content-driven model,” says Ross, whose CV since the Boyz II Men days includes serving as director of institutional trading for the Malachi Group and as director of equity research and trading for an Atlanta hedge fund. “We see short opportunities in the geriatric pharmaceutical space as corporate, government and global consolidation tightens margins for companies with only one horse in the race,” he adds.
For those that worry that the hedge fund industry popularisation has got out of hand – as a former Bank of England monetary policy committee member shuts his flagship fund, but others continue to pile in – Mr Ross has some words of wisdom on how his particular background has prepared him for hedge fund management.
“The non-linear, volatile nature of a great musical composition is very similar to security price action,” he says. “Having this base understanding can greatly assist in accomplishing inerratic portfolio design.”
Hum, if you say so.
