Greenhouse Funds LLLP

Greenhouse Funds LLLP serves institutional and other sophisticated investors by providing discretionary portfolio management primarily to commingled private funds (long/short hedge funds and long-only funds) and by acting as subadviser to selected separately managed accounts and a registered investment company (for example, the Baird Equity Opportunity Fund). The firm manages assets on a discretionary basis across master-feeder fund structures and reports approximately $2.93 billion in assets under management.

The firm’s investment approach is bottom-up, fundamental equity research with a focus on U.S. small and mid‑cap companies (generally under $20 billion market capitalization), seeking to generate alpha on both long and short positions while aiming for lower market correlation. Strategy implementation varies by product—its Cosmos funds target materially higher gross leverage (typically 250%–400% gross exposure), while its long‑only vehicles generally employ little or no leverage—and the firm monitors exposure, sector weights and position sizing as part of risk management.

Noteworthy aspects of Greenhouse Funds’ structure and affiliations include that Baird Financial Corporation (BFC) made a strategic investment and is deemed to “control” the adviser, and the firm routinely uses affiliated broker‑dealers (Robert W. Baird and Strategas) for execution and research (including soft‑dollar arrangements), which the firm discloses and manages as potential conflicts. The adviser and an affiliate have also filed exemptions from registration as commodity pool operators, and the firm operates both hedge and long‑only master‑feeder funds while providing subadvisory portfolio management to a registered investment company—features that are less common among peers in its category.