New Hedge Fund Centenario Capital Launches with $20 Million in Commitments
Businessman David Galperin and investment manager Emil Goldfarb are launching a new hedge fund, Centenario Capital. The fund is starting with $20 million in investment commitments and is in the process of its first closing. Goldfarb, a former global securities analyst at Clal Insurance and Psagot, will serve as co-founder and chief investment officer, solely responsible for research, investment selection, portfolio construction, and risk management. Galperin, also a co-founder, will lead business development, investor relations, and operational infrastructure, without direct involvement in daily security selection.
Centenario Capital is targeting accredited investors with a minimum investment of $500,000. The fund will focus on publicly traded equities of small and mid-cap companies worldwide, with market capitalizations ranging from $250 million to $10 billion. This segment is seen as an area where hedge funds have an advantage over institutional investors, who often struggle with the lower liquidity of these stocks. The fund plans to maintain a concentrated portfolio of 15 to 30 positions, employing a bottom-up fundamental analysis approach.
Approximately 70% of the portfolio will be allocated to core holdings in companies expected to generate long-term value, with the remainder reserved for special opportunities, corporate events, and arbitrage transactions. The allocation is flexible and subject to market conditions. Given the concentrated nature of the portfolio, position sizing, liquidity, and risk management will be critical components of the investment process.
The launch occurs amid increased activity from institutional investors in Israel's hedge fund sector, which manages approximately NIS 100 billion ($27 billion) across hundreds of funds. Recent acquisitions include IBI's purchase of half of Plutus Fund for NIS 15 million ($4 million), Meitav's acquisition of Trio Fund for NIS 30 million ($8 million), and Harel's agreement to buy Tulip Fund for about NIS 30 million ($8 million). Menora is also in talks to acquire 25-30% of Agility Fund, and Phoenix is exploring entry into the sector. For institutional investors, these acquisitions offer expanded investment product offerings, management and performance fees, and flexible compensation models for investment managers. Hedge funds, in turn, gain access to the marketing, distribution, and operational capabilities of larger entities.
