John Schumacher and Mike MacBain launch East Coast Fund Management

June 10th, 2010
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Canadian bond market veterans John Schumacher and Mike MacBain, have joined forces to launch a fixed income focused hedge fund manager named East Coast Fund Management Inc. Prior to founding the new firm, John Schumacher was a co-chief executive at Scotia Capital, while Mike MacBain was the head of debt capital markets at RBC Dominion Securities.

According to the Globe and Mail, the Toronto-based hedge fund manager will charges fees that are significantly lower than the industry standard of 2% and 20%. Initial investors will face no management fees and will only pay 20% performance fees when East Coast’s hedge funds are up more than 4% for the year. Schumacher and MacBain reportedly chose the 4% mark because they believe that 4% should be attainable without the expertise of a hedge fund manager.

Following the firm’s initial fundraising period, which is set to end on July 1st, East Coast Fund Management is planning to charge new investors a modest management fee that will be below 2%. According to the article, the firm’s “founders fund” returned over 30 percent during the past 12 months.
For Detailed Investor Profiles on these Investors, click below:
East Coast Fund Management
Related People: John Schumacher; Mike MacBain
Related Entities: East Coast Founders Fund; East Coast Fund
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Launches and Hedge Fund Closings

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