Tech hedge fund targets institutional money
Thu Jul 24, 2008 8:07am BST
By Dane Hamilton

NEW YORK (Reuters) - The former chief technology strategist for
JPMorgan Chase (JPM.N: Quote, Profile, Research) and a partner are
reaching out for institutional investors after generating solid
returns over two years at their family-and-friends-financed hedge
fund.

Christie Street Capital, a firm named for the Edison, New Jersey,
street where Thomas Edison made globe-changing inventions, is looking
to raise several hundred million dollars or more for the technology-
focused fund, people familiar with the firm said this week.

Christie Street was founded by Greg Geiling, former top-ranked
Institutional Investor telecoms equipment analyst at JPMorgan who was
promoted to chief tech strategist in 2001. His partner, Andrew
Berliner, is a former managing director at hedge funds Ark Asset
Management and NorthStar Capital Funds.

The firm, which currently has less than $50 million (25 million
pounds), has generated returns of nearly 21 percent since inception
in August 2006, according to an investor note obtained by Reuters.

The firm is looking for institutional money at a time when tech
investing is somewhat out of favour compared with last year. The
Morgan Stanley Technology Index .MSH, which includes many major tech
stocks, has fallen over 20 percent from a peak last fall.

Still, one analyst said the firm could attract investor interest for
fund of funds and others looking to allocate capital to the
technology sector.

"Tech is not really in favour right now, but if Christie Street has a
verifiable track record and can convince prospective investors that
it will deliver alpha (above market returns), it should be able to
attract interest," said Dan Farkas, hedge fund analyst at Morningstar
Inc (MORN.O: Quote, Profile, Research). "Investors like alpha in just
about any form."

Christie Street executives declined to comment.

According to marketing materials, the firm plans to generate net
returns of 12 percent to 15 percent per year through a portfolio of
40 to 60 long and short positions in the technology sector.

It said it is particularly focused on "disruptive" technologies that
could cause significant market shifts prior to investment by retail
investors.

It didn't name any particular stocks it plans to buy, but said it
would short the companies whose technology could be thwarted by new
innovations and go long on those offering promising new technologies.

"Christie Street believes that there are a number of emerging
innovations within the TMT (technology, media and telecom) sectors
that will result in significant market dislocations over the coming
years," it said in the marketing materials obtained by Reuters.

Some technology sectors include digital advertising, wireless
applications, Internet video, broadband and others, it said.

The fund generated returns of 5.92 percent in the first half of 2008,
well above a similar benchmark, the Hedge Fund Research
Technology/Healthcare index, which lost 3.35 percent for the period.
In 2007, it posted returns of 10.29 percent, according to an investor
note.

The firm uses Goldman Sachs (GS.N: Quote, Profile, Research) as its
prime broker.


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