Local hedge fund among top 10; Cornerstone pays dividend

Local hedge fund among top 10; Cornerstone pays dividend

August 15th, 2012 by Staff Reports in Business Around the Region

Lauren Templeton

Lauren Templeton

Bloomberg LP's weekly newsletter on the hedge fund industry has listed the Chattanooga-based Lauren Templeton Capital Management fund as the seventh-best performing equity market neutral fund in 2012.

Lauren Templeton's "maximum pessimism strategy" concentrates on buying bargain stocks, while selling short potentially overvalued securities.

Fund managers follow the investment philosophy and selection methodologies of seed investor, Sir John Templeton.

"We enjoy investing in the current environment, because the pessimism and volatility tends to create more opportunities than usual, and we believe our methods are well suited to these types of markets." Lauren Templeton said in a statement Tuesday.

Cornerstone pays dividend

Cornerstone Bancshares Inc., parent company of the $421 million-asset Cornerstone Community Bank, will pay its quarterly dividend on Aug. 30 for the preferred stock it began issuing two years ago.

The payment marks the sixth consecutive quarter the Chattanooga bank has paid its preferred stock dividend.

To date, Cornerstone has raised nearly $13 million in capital through the offering of its preferred stock in the fall of 2010.

The offering helped shore up the finances of Cornerstone and features a convertible preferred security with a 10 percent annual, cumulative dividend, paid in cash quarterly if, as and when declared.