Wed, Mar 21, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers August 2014

FOCUS: How to conduct due diligence using backgammon


De Francisci: How to conduct due diligence using backgammon Giovanni de Francisci

Giovanni de Francisci runs the Petschek Family Office out of Monaco. He describes his unconventional views on manager selection, the state of the hedge fund industry and investment risks, using various colorful similes during a recent Opalesque TV interview with Matthias Knab. Here are some of his views.

A very unique strategy for selecting managers

"What makes me very unusual with regards to selecting hedge fund managers is that I don't have the typical conventional investment criteria, which is that you must have a minimum track record, minimum assets under management, or an investment strategy that I understand off the bat," he says when asked about his selection criteria.

De Francisci has invested in startup funds, and sometimes even in managers with no official track record and no assets under management. He has "seeded hedge funds on the barrel," he says, and will consider seed investments before a 12-month track record is completed. Making an investment in such a manager implies an "intimate relationship," according to him.

He does do due diligence - his way. He will ask the managers if he might stay at their place while he travels, and the managers are always very happy to oblige and get to spend time with an allocator. De Francisci gets to see how the manager lives and his personality. Then he plays Backgammon with them.

"One of my influential and unique due diligence tools that I use is playing Backgammon with the manager," he explains. "Backgammon is very different to Chess in the sense that there is an element of unpredictability in Back......................

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. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  3. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t

  4. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  5. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu