Tue, Feb 9, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Aussie seeder Scout Global to launch offshore fund version of its family office emerging manager fund

Thursday, May 09, 2013

News came this month that IMQ had seeded Romanesco Capital Management's Persistence Fund alongside an Australian seeding company,  Scout Global Funds. Oliver Alliker, director at Scout Global, explains that the firm was founded in Sydney from a family office in 2006 with the remit of investing in global emerging systematic trading managers via managed accounts.

The size of the pot that Scout Global can put into funds is dependent on the performance of the sub-funds, and Alliker confirms that they are currently invested in managers numbering up to the mid-teens. "We try and look worldwide for trading managers that have a specific edge in the market and we need them to be able to describe that edge and how they derive returns in the market" Alliker says in an interview with Opalesque. "We look at managed futures, foreign exchange, equity managers, options managers - we are agnostic in asset classes but try to invest in systematic strategies only because we use a strict quantitative approach in assessing a manager."

What Scout Global is looking for is emerging managers with smaller assets under management who target a specific market characteristic such as exploiting short term trends, or a manager with an innovative trading methodology.

"There are obviously some brilliant mature managers but we believe the great opportunity lies with emerging managers and there are not a lot of people who are looking at emerging managers - if you have detailed due diligence processes for evaluating these managers  there is a significant opportunity" Alliker says.

The firm has no geographical preference but there is a natural bias towards Asia, but also have holdings in the US, Europe and currently looking at opportunities in South America. Scout Global likes systematic managers and has no long bias managers.

Research is challenging: "We do find it difficult to find managers - we look at a lot and only invest in a few, however, there are opportunities" Alliker says.

The investment in Romanesco came because Scout Global were looking at them, liked them and their approach to trading and the individuals involved. "We understood that they were also being looked at by IMQ and we admire their due diligence process and attention to detail so having them co-seeding gave us even more confidence" Alliker explains.

Their business terms are simple: they take no stake in the fund management firm with which they invest, nor a portion of their fees, they ask for 'favourable investment terms' or lower fees and they don't ask for a fixed investment term. "We believe we want to invest in the manager on the basis of our careful due diligence so if things change we want the freedom to alter our investment" Alliker says.

Because of the family office structure, Scout Global gives no performance figures at the moment but they are in the process of forming an offshore fund replicating their current strategy. The new fund will be available to outside investors in the form of a master feeder Cayman Island registered offshore fund.

(This piece first appeared in Opalesque's AMB in April.)

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
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. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  2. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  3. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  4. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  5. HFRU Hedge Fund Composite Index down -2.58% in January[more]

    Global financial markets posted sharp losses in January led by declines in Oil and global equities, though steep intra-month losses in both were narrowed by strong gains in final trading days of the month. Global equities posted steep declines for the month led by Biotechnology, Energy, Financial, E