Mon, Nov 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Busara Advisors gets $150m from a Fortune 100 Silicon Valley-based to create a customized portfolio

Friday, April 15, 2011

Joseph Schlater
Opalesque Industry Update - New York based asset manager Busara Advisors was awarded $150m by a Fortune 100 Silicon Valley-based corporation to create a customized emerging manager hedge fund-of-funds portfolio, it was announced on Thursday.

Busara CEO Joseph Schlater said the allocation is the first for the firm. Hehe declined to divulge the identity of the client, but added the investor requested a portfolio of long/short equity and short-term fixed income strategies for the company.”

“We are open for business,” Schlater, who founded company in 2010, declared,

Andrew Timpson, Busara CIO added, “For this particular client, full transparency at the underlying position level was a must.” Timpson explained that a full transparency requirement was requested by the unidentified client for its tailor-made portfolio. Aside from that, liquidity was a major concern of the client before a final decision was made.

“Our model is built on customization, on going out and doing the research and finding good, quality emerging managers, and on obtaining full transparency for both risk management and portfolio management purposes,” Timpson said.

He added that Busara has already spent sufficient amount of capital since its inception which resulted to identifying prospective candidate funds for investment. At the same time, Busara is always on the look out for qualified and talented emerging managers.

Timpson is calling on firms which have not yet touched based with Busara to connect with them and explore investment opportunities.

“We want to have the most robust list of candidate funds,” he said. For his part, Schlater added that since the firm’s inception, he has learned that the operational aspect of the business is “extremely important.” “Our customized model had the flexibility to plug directly into the financial controls of the company. Without this level of security, we were unlikely to win the mandate - for this client, the operational aspect was equally important to the potential financial performance of the portfolio. The firm now believes that having a Fortune 100 corporation as a client will open additional doors to new potential investors. Since we have closed this mandate on March 1, the level of interest and the engagement in the conversations are a lot deeper. We are confident that with this first [investment], institutions will see the value in investing in emerging hedge fund managers,” Schlater pointed out.
- Precy Dumlao
PD

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca