Sat, Jun 25, 2016
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   |   
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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider