Tue, Sep 2, 2014
A A A
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

amb
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius

  5. Big hedge funds tighten grip amid consolidation[more]

    From Asianinvestor.net: The hedge fund industry consolidated last year with the number of funds falling by around a tenth from 2012 but assets under management rising $248.8 billion to $2.6 trillion, finds a new report from research firm eVestment. Firms with more than $1 billion in hedge fund A