Thu, Jun 29, 2017
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. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  2. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  3. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  4. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  5. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.