Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

IMQubator believes emerging hedge fund managers are better placed to generate premium returns

Monday, October 22, 2012
Opalesque Industry Update - Early stage managers are better positioned to benefit from current market conditions, according to Jeroen Tielman, CEO and Founder of IMQubator, a multi-strategy hedge fund incubation platform.

Citing a new report from PerTrac, Impact of Size and Age on Hedge Fund Performance: 1996 – 2011, Tielman said small funds with assets of less than $100m have outperformed large funds (those with assets of over $500m) in 13 out of the last 16 years. In addition, young funds (those started within the previous two years) had cumulative returns of 827% since 1996, well beyond the 350% posted by funds in operation for more than four years.

Alluding to emerging managers as ‘speedboats’ and larger funds as ‘supertankers’, Tielman noted: ‘It’s clear that speedboats are better equipped to explore and navigate the unknown, uncharted waters that make up the “new normal” of the current political and economic environment. Supertankers need a longer time to test the waters and change course, while they need to be prudent to stay in deep waters only. The present economic climate favours the quick and nimble and might punish the large, slow and cumbersome.’

Tielman adds that the ‘new normal’ makes it imperative for institutional investors to shake off their torpor and make allocations to more nimble funds with multiple return drivers and better transparency and governance. Emerging managers deserve to be included by institutional investors in the core of their hedge fund exposure, Tielman asserts.

A further advantage to investors in early stage funds is the unique moment of alignment and the diversification that younger managers offer to a portfolio, within the safety frame provided by an all-round and ‘partner type’ of investment manager, such as IMQ.

There are signs that pension funds continue to embrace early stage managers. IMQ, which seeks to nurture the next generation of hedge fund managers, is itself the beneficiary of a pension fund. It was capitalised in January 2009 with €250mm from APG, the asset manager for Dutch pensions giant Stichting Pensioenfonds ABP,.

The firm, which since inception has been predicated on its robust risk management, has recently appointed industry stalwart Linus Nilsson as Head of Risk Management, to further systematise and centralise the risk management function. Nilsson was previously at Man Investments, where he served as a senior analyst. Pior to that, he was a Risk Manager for the External Fixed Income Group for the Central Bank of Norway.

Established by Jeroen Tielman, now a 25-year veteran of the global institutional industry, IMQ offers an institutional platform where professional investors can gain exposure to emerging managers through the IMQubator multi-manager fund.

Jeroen Tielman was interviewed on Opalesque TV in February 2012. You can watch that interview here.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t