Fairhills Group, a family office based in White Plains, NY, is repositioning itself as a hedge fund operator, according to Hedge Fund Alert.

The firm has reportedly signed up managers for its initial two investment teams and has a third lined up, and views its business model as a fund “incubator”. Fairhills is planning to seed vehicles with between $5 million and $50 million in capital and offer support services and market offerings under its brand. For doing so, it will take a 2 per cent management fee as well as a portion of the funds’ performance fees, according to the report.

Fairhills Group includes the family office of Edward Bronson, and Bronson will be funding part of the seed investments himself, with additional capital being supplied by outside investors.  

The first two planned funds are from Daniel Glickman and Luke Smith, who will both reportedly launch quantitative equity funds by year-end. Glickman will invest in companies in the Russell 2000 index while Smith’s offering will focus on European stocks.

Bronson’s plans are to bring on between seven and ten “proven” managers who trade commodities, and who are being forced out of their current jobs due to regulatory changes, the publication reports.

“We’re putting them in an environment where they can re-create their own strategies, and then our marketing team will raise capital,” Bronson is quoted as saying.

David Benway, who joined the firm in August 2011, will be leading the marketing push.