Joshua Resnick’s Jericho Capital Asset Management has launched a new hedge fund.
The New York–based investment firm recently created Jericho Capital Special Opportunities, a concentrated fund designed to invest in no more than five stocks. It can also include as few as two stocks.
So far, only those who already have an investment with the firm have been able to put money into the new fund. The intention is to offer existing investors additional capacity, and the minimum investment is $1 million.
As we recently reported, Resnick’s flagship fund, Jericho Capital Partners, posted a 4 percent gain in September during a disastrous month for many long-short equity funds. Through the first three quarters of the year, Jericho is up 11 percent.
Jericho, which was launched in 2009, gained 24.4 percent in 2012 and 33.85 percent in 2013. It lost 7.8 percent last year.
Jericho typically maintains a well-diversified portfolio. At the end of the second quarter, the firm held 44 stocks in its $1.6 billion U.S. long equity portfolio. However, the top five holdings accounted for roughly 35 percent of assets.
Chinese search company Baidu and Chinese e-commerce site JD.com were the firm’s top two positions.
Jericho is also said to be a deft short seller. According to a person with knowledge of the firm’s performance, since its inception Jericho Capital Partners is said to be materially positive in its short book.
It is not publicly known which stocks are included in the new fund. But so far the fund is up by double digits in its first two months of existence, according to an individual who is familiar with its results.
One likely holding is Cablevision Systems Corp. We earlier noted that Jericho told investors in its second-quarter letter that it was bullish on the cable television operator, in part because it seemed to be a prime takeover candidate.
On September 17, Netherlands-based telecommunications giant Altice agreed to acquire Cablevision for $10 billion. The stock jumped 14 percent on the news and surged 29 percent in September alone.
