Sat, Mar 24, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

No one-size-fits-all solution for hedge fund succession planning

Thursday, August 23, 2012

Kyle Vataha
Bailey McCann, Opalesque New York:

Succession planning can be a touchy subject in the hedge fund space. After the death of well-known hedge fund manager Barton Biggs, his firm, Traxis Partners provided a transition plan for investor capital that attempted to absorb investors in the funds Biggs managed himself into the funds managed by others in the firm. However, they also gave investors the opportunity to ask for their money back despite the firm's established track record, a situation may be an object lesson for fund managers currently examining their own succession plans.

"With hedge funds you have a fairly unique situation where the value of the fund is usually tied up in one person, or a few people, and that is what draws the investor. It makes handing them off to another team in the event that something happens more difficult," explains Kyle Vataha, Vice President, Pluris Valuation Advisors in an interview with Opalesque.

Hedge funds often lack the succession planning common to other types of businesses, even other types of financial firms because if the fund is a single manager or even a small investment team, there is rarely a second string waiting in the midst. Usually part of a fund's edge is the unique strategy a manager brings to the table based on his or her unique expertise.

"What happens in this space is that investment managers tend to be focused on their strategy and bringing in assets. The structure of the firm sort of ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  3. Activist Investors - The seven most undervalued stocks in Larry Robbins' portfolio, Stamford hedge fund still seeking shakeup of Taubman board[more]

    The seven most undervalued stocks in Larry Robbins' portfolio From ...On February 14th, Larry Robbins' firm Glenview Capital Management filed its quarterly Form 13F regulatory filing. The firm's stock portfolio totals $18.5 billion with 58 positions according to the latest

  4. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu

  5. Opalesque Exclusive: Northern Trust builds on blockchain-backed private equity solution[more]

    Bailey McCann, Opalesque New York: Private equity clients at Northern Trust can now carry out audits of private equity lifecycle events directly from the blockchain. Northern Trust, working with PwC and other audit firms in Guernsey, has added this feature to its existing solution set for private