Key Takeaways
- • Honeycomb Asset Management, founded by David Fiszel (a former SAC Capital and Steve Cohen protégé), delivered a 9.3% net-of-fees return in Q1 2017, substantially outperforming the HFRI hedge fund index's 2.3% gain.
- • The fund manages approximately $330.7 million in assets as of March 31, 2017, with backing from Dan Loeb and Steve Cohen's family office.
- • Honeycomb maintains a 54.1% net exposure with concentrated positions in information technology (40.4% net exposure) and consumer discretionary (33.5%), reflecting a focused strategy in consumer, technology, media, and telecommunications sectors.
- • Geographic positioning is weighted heavily toward North America (37.1% net exposure) with secondary European exposure (11.9% net), indicating a regional concentration strategy.
- • Fiszel launched Honeycomb in summer 2016 following a career trajectory that included founding Rhombus Capital (which closed in 2007) and subsequent tenure at Cohen's SAC Capital Advisors.
Summary
Honeycomb Asset Management, a newly launched hedge fund founded by David Fiszel, has demonstrated strong early performance in its first full quarter of operation. According to an investor document obtained by Business Insider, the fund's flagship vehicle returned 9.3% net of fees during the first quarter of 2017—a performance differential of approximately 700 basis points above the HFRI hedge fund index, which gained 2.3% over the same period.
The fund operates with substantial institutional backing, including support from Dan Loeb and Steve Cohen's family office. As of March 31, 2017, Honeycomb managed $330.7 million in assets. The fund employs a focused investment strategy concentrated in consumer, technology, media, and telecommunications sectors, with a net exposure of 54.1% across its portfolio.
Honeycomb's positioning reflects a clear sector and geographic allocation strategy. Information technology represents the largest net exposure at 40.4%, followed by consumer discretionary at 33.5%. Regionally, the fund maintains significant North American exposure at 37.1% net, with European positions representing 11.9% net exposure. This concentrated positioning suggests a high-conviction investment approach rather than a diversified multi-strategy model.
Fiszel brings substantial industry experience to the venture. He began his career at SAC Capital Advisors in 2000 and subsequently founded Rhombus Capital, which operated until its closure in 2007. He later returned to Cohen's organization before launching Honeycomb in summer 2016. His track record under Cohen's tutelage, combined with family office backing from one of Wall Street's most prominent hedge fund operators, provided a foundation of institutional credibility and capital for the fund's launch.
The fund operates with substantial institutional backing, including support from Dan Loeb and Steve Cohen's family office. As of March 31, 2017, Honeycomb managed $330.7 million in assets. The fund employs a focused investment strategy concentrated in consumer, technology, media, and telecommunications sectors, with a net exposure of 54.1% across its portfolio.
Honeycomb's positioning reflects a clear sector and geographic allocation strategy. Information technology represents the largest net exposure at 40.4%, followed by consumer discretionary at 33.5%. Regionally, the fund maintains significant North American exposure at 37.1% net, with European positions representing 11.9% net exposure. This concentrated positioning suggests a high-conviction investment approach rather than a diversified multi-strategy model.
Fiszel brings substantial industry experience to the venture. He began his career at SAC Capital Advisors in 2000 and subsequently founded Rhombus Capital, which operated until its closure in 2007. He later returned to Cohen's organization before launching Honeycomb in summer 2016. His track record under Cohen's tutelage, combined with family office backing from one of Wall Street's most prominent hedge fund operators, provided a foundation of institutional credibility and capital for the fund's launch.
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