Wed, Sep 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Asset raising for hedge funds is more exponential than linear says Agecroft’s Don Steinbrugge

Wednesday, September 04, 2013

Beverly Chandler, Opalesque London:

Don Steinbrugge of Agecroft Partners has issued his thoughts on asset growth in hedge funds, saying that he believes momentum in asset growth is vital to successfully raising hedge fund assets.

Steinbrugge writes: "Many small to mid-sized hedge funds become frustrated because their firm’s assets under management are not growing and they believe the market is biased against them based on their asset size. They are constantly hearing that a majority of assets are flowing to the largest hedge funds despite evidence that shows smaller hedge funds have significantly out performed larger funds over time."

Steinbrugge believes that many live in the expectation that once they get to a certain asset size, it will be much easier to raise assets. "However" he writes, "that is not necessarily true. Agecroft Partners believes that momentum in asset growth is more important to being successful in raising hedge fund assets for small and medium sized hedge funds than the current asset size of the organization."

Steinbrugge bases his belief on the fact that most hedge fund investors put much more weight on what happens to a hedge fund after the initial meeting than on the historical track record. "For example, the performance generated by the hedge fund in the 12 months after the initial meeting is of equal importance to an investor as the previous ten year historical track reco......................

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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style