Key Takeaways
- • Honeycomb Asset Management, founded by David Fiszel (a Steve Cohen protégé), returned 9.3% net of fees in Q1 2017, significantly outperforming the HFRI hedge fund index at 2.3%.
- • The fund managed 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 positioning in information technology (40.4% net exposure) and consumer discretionary (33.5%), reflecting a focused sector-driven strategy.
- • Geographic exposure is heavily weighted toward North America at 37.1% net exposure, with secondary exposure to Europe at 11.9%, indicating a primarily developed-market investment thesis.
- • Fiszel's track record includes prior stints at SAC Capital Advisors (starting in 2000) and leadership of Rhombus Capital (2001–2007), with Honeycomb launched in summer 2016.
Summary
Honeycomb Asset Management, a newly launched hedge fund founded by David Fiszel, has delivered strong early performance, returning 9.3% net of fees during the first quarter of 2017. This result substantially exceeds the broader hedge fund industry benchmark, represented by the HFRI index, which posted a 2.3% return over the same period. The fund's outperformance is particularly notable given the crowded hedge fund landscape and represents the kind of differentiated returns that typically attract institutional capital.
The fund operates with approximately $330.7 million in assets under management as of March 31, 2017, and benefits from strategic backing by prominent investors including Dan Loeb and the Cohen family office. This institutional support provides both capital stability and credibility within the alternative investment community. Honeycomb's investment mandate focuses on three core sectors: consumer, technology, media, and telecommunications, positioning the fund within growth-oriented segments of the market.
Honeycomb's portfolio construction reflects a moderately aggressive positioning with a net exposure of 54.1%, indicating meaningful long bias while maintaining a hedged overlay. Within this framework, information technology represents the fund's largest sectoral concentration at 40.4% net exposure, followed by consumer discretionary at 33.5%. Geographically, the fund demonstrates a pronounced North American focus with 37.1% net exposure to the region, with secondary European exposure at 11.9%.
Fiszel brings substantial institutional pedigree to the venture, having initially joined SAC Capital Advisors in 2000 during its growth phase. Following his departure, he founded Rhombus Capital, which operated until its closure in 2007. Fiszel subsequently returned to Cohen's organization before launching Honeycomb in summer 2016. His track record combining SAC-era experience with prior entrepreneurial leadership suggests the fund's strong Q1 performance reflects both sector selection skill and established investment processes refined across multiple market cycles.
The fund operates with approximately $330.7 million in assets under management as of March 31, 2017, and benefits from strategic backing by prominent investors including Dan Loeb and the Cohen family office. This institutional support provides both capital stability and credibility within the alternative investment community. Honeycomb's investment mandate focuses on three core sectors: consumer, technology, media, and telecommunications, positioning the fund within growth-oriented segments of the market.
Honeycomb's portfolio construction reflects a moderately aggressive positioning with a net exposure of 54.1%, indicating meaningful long bias while maintaining a hedged overlay. Within this framework, information technology represents the fund's largest sectoral concentration at 40.4% net exposure, followed by consumer discretionary at 33.5%. Geographically, the fund demonstrates a pronounced North American focus with 37.1% net exposure to the region, with secondary European exposure at 11.9%.
Fiszel brings substantial institutional pedigree to the venture, having initially joined SAC Capital Advisors in 2000 during its growth phase. Following his departure, he founded Rhombus Capital, which operated until its closure in 2007. Fiszel subsequently returned to Cohen's organization before launching Honeycomb in summer 2016. His track record combining SAC-era experience with prior entrepreneurial leadership suggests the fund's strong Q1 performance reflects both sector selection skill and established investment processes refined across multiple market cycles.
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