Kalo Capital Management, LP is a long/short equity fund focused on companies with emerging growth characteristics, assembled in an overall portfolio with reduced volatility. Investments are determined based on individual company fundamental analysis and risk/reward evaluation. These emerging growth stocks are often characterized by large open-ended growth opportunities, disruptive technologies, disruptive business models, or changing industry dynamics. Reduced volatility is achieved by utilizing a diversified portfolio focused on stocks with limited downside risk.
The Fund will also take advantage of other short term trading opportunities to create additional alpha. Emerging growth stocks have the ability to appreciate significantly more than the overall stock market as the growth and business model develop. The Fund believes that the market often misprices these emerging growth stories, creating the opportunity for outsized returns.
The Fund targets absolute performance with low drawdowns, but expects better absolute performance in up or flat markets, than in down markets. Historically, the Portfolio Manager has captured 59% of the upside market moves on average, while losses in negative market periods were limited to 27% of downside market moves vs. Russell 2000. The Fund is managed by Steven D. Friedman, who has spent over ten years in the hedge fund industry, and has been a Portfolio Manager since 2006 (first with Pequot Capital, and later at Manalapan Oracle Advisers). Prior to the hedge fund industry, Steven was an investment banker at Lazard Freres & Co. LLC.
Steven has an MBA from Columbia University and a BBA from the University of Michigan. He is a CFA Charterholder and a Registered Investment Adviser. Steven has a significant portion of his personal assets invested in the Fund. Units of the Kalo Capital Management, LP fund are available for trading on EXANTE's ATP as of today.