Investment banking firm Dougherty has launched its first hedge fund, the Dougherty Absolute Equity Fund. 

Portfolio manager Bob Schnell, who has spent the last 12 years managing similar fund strategies for Telluride Asset Management and Deephaven Capital Management, believes the fund offers a unique approach for hedge fund investors.

"The massive consolidation within equity research and the growth in exchange-traded funds have created a large void in the area of traditional fundamental stock picking," he says. "Dougherty & Co., through its existing research and investment operations, provides an ideal platform for a fundamental based hedge fund investment strategy." 

Schnell defines the fund as employing a hedged investment strategy with a focus on smaller capitalisation companies and says the portfolio will have a deep value bias with well-defined stock selection criteria. 

The fund has a strategic advisory board which will be made up of three outside members: Gregory Graves, executive vice president and chief financial officer for Entegris; Mark F. Steen, principal of Blue Rock Advisors; and Vince Flynn, an author.

"In addition to the fund's significant risk management tools we already have in place, our strategic advisory board brings together several experienced, independent individuals to help oversee our investment approach," says Jeff Jacobson, senior vice president - private client group for Dougherty. "We are pleased to have these very accomplished professionals join us. They will add important perspectives to our overall investment strategy."