BOSTON, Sept 9 (Reuters) - Hedge fund Overland Advisors changed its name to Coastland Capital to better reflect its new ownership structure, the $1.1 billion fund told investors this week, after its founders and partners bought out a minority stake in the firm that had been held by U.S. bank Wells Fargo. The fund, which tries to make money by taking advantage of different prices between securities, announced its rebranding just days after its main portfolio outpaced many rival hedge funds by making money in August when global markets tumbled. The Coastland Strategic Relative Value Fund, which pledges to deliver returns that are not correlated to big market moves like the one seen last month, gained 1.4 pct in August, leaving it up 7.4 percent for the year, according to someone familiar with the numbers. A spokesman for the firm declined to comment. The average hedge fund lost 1.9 percent in August, leaving it roughly flat on the year, data from Hedge Fund Research show. Critics said many hedge funds were crowded into the same popular stocks. The broader stock market fared even worse with the Standard & Poor's 500 losing 6.3 percent last month. Coastland has now crossed key milestones, including age, size and ownership, that analysts say are critical for interested investors to begin looking at a firm more closely. "Since the creation of our firm nearly six years ago, our partners' capital has grown and our client base has evolved from a single financial institution to a well-rounded group of sophisticated investors - pensions, endowments, foundations, funds of funds, family offices and individuals," the firm wrote in the letter dated Sept. 8 and seen by Reuters on Wednesday. The firm was spun out of Wells Fargo five years ago at a time when major U.S. banks were shuttering proprietary trading operations to comply with new financial legislation. Firm founders Derek Dunn and Gordy Holterman, who already owned the majority of Overland Advisors, in June purchased Wells Fargo's minority stake. For inspiration on a new name, the pair looked to its San Francisco location near the Pacific Ocean. (Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)
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