Light Street Capital Management, LLC is a hedge fund headquartered just south of San Francisco in Palo Alto, California. The firm manages nearly $4.5 billion in client assets spread across 24 pooled investment vehicles, which are also known as funds. Light Street Capital has just 15 financial advisors on staff. Unlike some other similar firms, it's exclusively a fund manager and does not work with separately managed accounts.
While not everyone can invest in a hedge fund, you can invest your money for your specific goals. A financial advisor can often be a huge help when it comes to figuring out how to effectively invest, and SmartAsset's free tool can help you find an advisor.
Light Street Capital Management Background
Light Street Capital has been in business for just over 10 years. Founded in 2010 by Glen T. Kacher, the firm has been registered with the Securities and Exchange Commission (SEC) since then. Kacher serves as the firm's chief investment officer (CIO) and controlling owner. He owns the firm indrectly, through a family trust for which he is the trustee. Kacher has over 20 years of financial industry experience and is a graduate of the Stanford Graduate School of Business. Light Street also has an office in San Francisco.
Light Street Capital Management Investment Philosophy
The investment philosophies and strategies of Light Street Capital vary based on the specific type of fund that's in question. Hedge funds and long-only funds invest in equity securities that are publicly traded in both foreign and domestic markets. Venture capital funds invest in private companies around the world, specifically in the technology sector. These investments tend to focus on eCommerce, social media and the sharing economy. Closed-end funds use a single investment each.
As you can tell, Light Street Capital invests in a wide range of securities. It also manages all assets entirely on a discretionary basis, so it has trading authority and ultimately makes all investment decisions. It may use a variety of trading techniques, and no securities are off limits to the firm. Its methods of analysis also vary based on each fund, as advisors use both technical and fundamental analysis to evaluate potential investments.
Largest Hedge Funds Managed by Light Street Capital Management
Light Street Mercury Master Fund, LP
- AUM: $3,322,220,980
- Minimum: $100,000
- Beneficial Owners: 3
Light Street Argon, LP
- AUM: $1,184,944,185
- Minimum: $10,000,000
- Beneficial Owners: 664
Light Street Xenon, Ltd
- AUM: $911,860,168
- Minimum: $10,000,000
- Beneficial Owners: 255
Fees at Light Street Capital Management
Light Street Capital charges maintenance fees to each of its funds. You will need to reach out to the firm directly to get a breakdown of the fees. Management fees industry-wide tend to range from 1% to 2% annually, though.
The firm also charges performance-based fees to many of its funds, which it calls special profit allocations. Only certain series of the long-only funds do not charge these fees.
What to Watch Out For
There are no legal or regulatory disclosures present on Light Street's SEC-filed Form ADV.
Remember that only accredited investors can invest in a hedge fund. If you want to be considered an accredited investor, you need to have at least $200,000 of earned income ($300,000 for couples) over the past two years, plus a reasonable assumption that the same will be true for the upcoming year. Another way to become an accredited investor is if you have at least a $1 million net worth, minus the value of your primary residence, on your own or with a spouse.
Becoming a Client of Light Street Capital Management
As noted earlier, only accredited investors can invest in Light Street Capital Management's hedge funds. If you meet this criteria, you should reach out directly to the firm and inquire. You can reach the firm over the phone or by visiting one of its two Bay Area offices.
All information is accurate as of the writing of this article.
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