In the last quarter (Q4-2011), Opalesque recorded a lot of
commentaries coming from the hedge fund industry on what new
hedge fund managers should and should not do, the problems
they are encountering, the opportunities that are awaiting, and
generally what's in store for them. Here are a few snippets of the
"global conversation" about our hopeful start-ups.
Trends in LatAm, in boutiques
While some of our communicators see a trend in funds being
launched in LatAm, others see a return to investing in boutiques.
Most new managers global law firm Walkers has seen come from
established hedge funds, others from banks. Setting up with $10m
or $20m is no longer popular, as more capital is needed to survive.
Thankfully, many managers are getting significant amounts of
seed capital now. Walkers also sees a trend in the growth of funds
launched by managers in South America, particularly Brazil and
Chile. The law firm, which has a group there now, expects more
activity there from now on.
A trend that Alexandre Col noted is the renewed interest in
boutiques. He is the head of investment funds at Geneva-based
Banque PrivĂ©e Edmond de Rothschild. As a fund of hedge funds
manager (FoHFs), he used to be in favour of investing in large
hedge funds because they attracted talents, he said. Even more
so after '08. However, today, he is looking at new managers, at
diversifying his portfolio and building a niche strategy. Now is the
right time for that, he thinks.
Here is some advice for you
At a conference, several investors and FoHFs managers discussed
what a new fund needs to do to ......................
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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.