David Glancy, a high-profile junk bond manager for Fidelity Investments, is prepping his new hedge fund venture after leaving the giant money manager this past summer. Glancy's new firm, Andover Capital Advisors, will manage the Andover Capital fund, according to marketing materials obtained by AIN. The fund will invest in the "stocks, bonds and bank debt of companies with below-investment grade rated debt. Andover Capital will focus on the best opportunities within capital structures of both healthy and distressed leveraged companies throughout market cyclesÉ" The fund will invest in roughly 30-50 issuers that operate primarily in North America, the document said.
Glancy plans to launch the fund in December or January, said one official familiar with the fund. At Fidelity, Glancy managed the Fidelity Capital & Income Fund and the Fidelity Leveraged Company Stock Fund. The other partners at the Andover, Mass.-based firm are Richard Barrett and William Wall. Barrett was director of high-yield research at Fidelity, while Wall was a managing director at Fidelity Capital Investors, a private equity group which invests exclusively for Fidelity's account.
The Andover fund has a $5 million minimum, a 2% management fee and 20% performance fee. The official familiar with the fund said it is being prime brokered by Morgan Stanley. A Fidelity spokeswoman said the three officials left the firm in July and have been replaced. A Morgan Stanley spokesman was unable to immediately comment. Glancy did not return calls. Barrett could not be reached, and Wall was in a meeting and unavailable to comment.