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.