Magnitude Capital manages private investment funds, focusing primarily on fund of hedge funds strategies and multi-strategy approaches designed to deliver attractive risk-adjusted returns. Founded in 2002 and based in New York, Magnitude Capital operates as an investment advisor managing approximately $9.4 billion in assets. The firm primarily serves pooled investment vehicles, institutional investors, and high net worth individuals through private funds such as Magnitude International, Magnitude U.S. Partners, and the Alpha Overlay Fund. Magnitude Capital conducts extensive operational and investment due diligence to select independent portfolio managers who execute various trading strategies. The firm operates on a discretionary basis, retaining full authority over client assets while delegating certain trading functions to third-party managers within managed account structures. Magnitude Capital does not provide direct portfolio management services to individual retail investors or direct advisory accounts.
Fee Structure
Magnitude Capital manages investment funds for institutional and high net worth investors, but the firm's specific fee schedule is omitted because the brochure is delivered exclusively to qualified purchasers. Management fees are generally charged as an annual percentage of net assets under management and paid monthly in arrears. Performance compensation is typically charged as a percentage of profits above previous high water marks or hurdle rates, and is calculated quarterly in arrears and upon redemption. Investors with aggregate related interests exceeding $75 million qualify for modified fee programs with alternative management and performance fee options. Reduced fee options are also available through certain investment consultants meeting specific investment thresholds. Partners and employees of Magnitude Capital either invest in share classes that do not pay management fees or performance compensation, or receive full rebates on their fees.