Lancaster Capital

Lancaster defines Execution Alpha as excess returns captured from the bid/ask spread inherent in municipal bond trading. The firm's systematic platform acts as a liquidity provider in fragmented markets, aiming to earn rather than pay the spread on each trade. This contrasts with traditional managers who typically demand liquidity and thus incur the spread as a hidden transaction cost. The approach targets market-structure inefficiencies rather than credit risk.

Lancaster uses proprietary technology to systematically identify actionable opportunities across the fragmented municipal bond market. The platform scans over one million unique, infrequently traded bonds to find situations where the firm can provide liquidity. Trades are executed electronically with algorithmic precision, and positions are rotated while adhering to pre-set duration, credit, and diversification parameters.

No, Lancaster operates as a systematic execution platform rather than a conventional buy-and-hold bond manager. It does not focus on credit selection or interest-rate forecasting. Instead, the firm targets the persistent bid/ask spread that acts as a drag on municipal bond portfolio returns. Clients access the strategy through separately managed accounts at partner custodians, with customizable parameters for tax exposure and duration.

Lancaster provides its strategy through separately managed accounts (SMAs) that clients can fund with cash and/or eligible securities at partner custodians. Portfolios are tailored to individual client specifications, including duration targets, state and local tax exposure, and federal and AMT considerations. The firm does not publicly disclose participation in commingled funds or direct co-investment structures.

Co-founders Ron Bezoza and Jim Perrello lead the firm. Bezoza brings over 15 years of experience in wealth management and distribution from Goldman Sachs and Morgan Stanley. Perrello is a fintech entrepreneur with over 30 years in fixed income, algorithmic trading, and technology execution, having previously founded multiple credit-trading technology businesses and held roles at Goldman Sachs, Reuters, and Wolverine Trading.

Lancaster focuses specifically on the municipal bond market. The firm states this market's extreme fragmentation — over one million unique securities trading infrequently — makes price discovery inefficient and allows dealers to systematically capture the bid/ask spread. Lancaster does not publicly indicate it operates in corporate credit, treasuries, or other fixed-income segments.

The firm emphasizes client visibility. Its platform provides full transparency into holdings, trades, and performance. The systematic, electronic nature of its execution is designed to deliver Wall Street-grade discipline directly to investors, aligning incentives around the capture of market-structure-based returns rather than hidden transaction costs.