New Managers December 2012

Fundana Series - Year-end Review: Key findings from the Fundana series

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Bruno Guillemin Nick Morrell

This article was authored by Bruno Guillemin, CAIA, Senior Analyst, and Nick Morrell, Head of Operational Due Diligence and Chief Risk Officer at Fundana SA, Geneva.

The Fundana series of articles discusses Investments in Emerging Managers; it derives from the real world experience of the Fundana team. Fundana is the investment advisor to several Funds of Hedge Funds and directs at least half of its new investments to Emerging Managers. The investment process typically involves allocating a small amount Day 1 or Early Stage (defined as less than one year after the fund's launch) to new managers who have strong pedigrees.

The objective of this series of articles is to share thoughts around our key observations. It does not aim to be "statistically significant" but to create a dialogue around those observations.

The Emerging Managers space is currently in vogue. Following the 2008 credit crisis, allocators focused first on the opportunity to invest with previously hard-closed Blue Chip hedge fund managers. Now that most of those funds are hard-closed again, investors are taking another look at Emerging Managers.

The objective of this last article is to review the key observations we have gathered whilst writing the Fundana series over the last nine months (please revert back to the previous articles in the series for full details of our analyses). Then we extend the discussion towards internal lessons learn......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.