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Alternative Market Briefing

Regulation, while costly, has made the sourcing of top investment talent easier for hedge funds

Wednesday, October 25, 2017

Komfie Manalo, Opalesque Asia:

The new regulations imposed by various governments to safeguard the financial markets are costly but have made it easier to source the top investment talent, claimed Justin Dew, director of Strategic Development at Welton Investment Partners.

"My primary role at Welton is to source the top investment talent that I can to build out new teams, to build out new portfolios and businesses and to add to our multi-strat as many high Sharpe-Ratio strategies as I can possibly find," Dew said at the latest Opalesque 2017 New York Roundtable.

He added, "Regulation has made that part easier because traders and PMs spinning out from various shops and big and small firms anywhere in the world are simply realizing that their probability of success has gone from somewhere in the range of 10% to 15% down to 3% to 5%."

Dew argues that from that perspective regulation has been helpful for existing, larger firms because he can go to traders and portfolio managers and pitch them a similar business to what they would have done had they created it themselves, "but without all the headaches around the overhead of building a business and the huge cost of compliance."

Costly regulations

Dew particularly pointed out the cost aspect of regulations: "The regulatory environment or specifically how we are address......................

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