Sat, Aug 30, 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   |   
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest