There will be a new player in the alternative mutual fund space when the new year arrives. Bandon Capital Management, an alternative investment firm based in Portland, Oregon, plans to launch its debut mutual fund on January 3.

Bill Woodruff Bandon Capital Founder, Managing Partner and CIO

The Bandon Isolated Alpha Fixed Income Fund will have two sub-advisers, Dix Hill Partners and Logan Circle Partners. [SEC filing]

In an interview with The MFWire.com, Bandon founder, managing principal and chief investment officer Bill Woodruff said the fund is seeded with about $20 million. Woodruff, who started the company in January 2008, hopes to have $100 million of AUM in the fund by the end of 2011.

Bandon, which manages $100 million in SMAs, has six employees. Heading up sales, marketing and relationship management is Mike Miller, an alum of Federated Investors, mPower/Morningstar and Invesmart.

Mike Miller Bandon Capital Head of Marketing, Sales and Relationship Management

Bandon filed for a total of four share classes: Investor, A, C and R. Initially, only the Investor shares will be available, Miller said. Expenses for that share class will be capped at 195 basis points.

Asked whether Bandon plans to add to its sales team, Woodruff said: "We are currently looking at a capital raise. The funds will be primarily used to broaden distribution."

Bandon will make a decision during the first quarter on whether to raise capital.

Gemini Fund Services is the mutual fund's transfer agent, administator and accountant, Northern Lights Distributors is distributor and Thompson Hine, LLP is legal counsel.

Woodruff said he and his team are looking into launching more mutual funds down the road. A possible second mutual fund will be based on the firm's hybrid equity strategy. A possible third fund will be a fund of mutual funds or a core alternative strategy. 

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