Wed, Apr 25, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its