Thu, Jun 29, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers May 2013

Seeders' Corner - Hermes BPK and Northern Lights' Accelerator Fund focuses on mitigating operational and business risk

Mark Baker

In September 2011, Northern Lights Capital Group, LLC, an $11bn private equity firm based in Seattle, and Hermes BPK Partners LLP, a $1.6bn fund of hedge funds based in the UK, partnered to launch a new investing platform that would provide access to early stage hedge fund managers for institutional investors. The Accelerator Fund was started in March this year, just as it was making its first investment in an emerging manager called Taurasi Capital Management, a new fundamental long/short credit hedge fund based in New York.

Hermes BPK, which was started in 2008, is the hedge fund division of Hermes Fund Managers, a ÂÂ30bn (US$45bn) asset manager which itself is owned by BT Pension Scheme, the largest pension fund in the UK.

"Hermes and BT are the founding fathers of the corporate governance movement," Mark Barker, Hermes BPK's founding partner and co-CIO told Opalesque. "There was a call coming from our anchor investor saying Ãâ‚Ëœthe hedge fund industry is broken, be a part of fixing it.' This was really to address the governance and operational issues that had become glaringly apparent during the crisis. When we started putting money to work, we focused on improving their governance structures, their operational structures, their transparency and their general investor alignment."

Hermes likes to invest in smaller managers, but as many of them had questionable operational and governance standards, the fund of funds worked with them to improve those standards. But then the managers' assets invariably increased substantially as they became attractive to institutions. So they did not stay small, and this was a......................

To view our full article please login

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

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. 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

  2. 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

  3. 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.

  4. Investing - In Amazon's shadow, hedge funds take aim at Brexit-hit retailers[more]

    From NYTimes.com: Hedge funds have significantly stepped up bets against Britain's traditional high street retailers, as the sector struggles with online competition, worries about a stretched consumer and weakening sales and profits. The risks were on full display on Tuesday when shares in Debenham

  5. Barclay Hedge Fund index gains 0.50% in May, 4.13% YTD[more]

    Hedge funds gained 0.50% in May according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 4.13% in 2017. The Barclay Hedge Fund Index has now been profitable for seven months in a row, with a cumulative gain of 6.10%. The Barclay Technology Index has gained 12.27% in the fi