Wed, Nov 25, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers August 2014

PERSPECTIVES: Views and perspectives relevant to emerging fund managers

White-collar investigator warns investors against renewed complacency

Some believe investors are far too prudent, some believe they are too credulous. To the former FBI Special Agent whose job is to check on hedge fund managers' background, it would be the latter... When it comes to new managers, he sees investors doing a lot more of their own homework on them.

Then there are those fund managers who come from firms that have a history. The most obvious ones, nowadays, are the ex-SAC managers that are either being hired by other firms or setting up on their own. They are, according to Springer, subject to more background checks than average. Those hiring managers with a history do not want to risk reputational risk and want to demonstrate to their clients that these managers were thoroughly checked; this can be done with outside investigators.

"We have to sit down with the manager and say, as you know there is a lot of controversy here and it's all about avoiding headline risk, reputational risk," he explains. "The manager understands that he is going to have to undergo extremes of scrutinizing."

"I think when you do that, you are going to have some tremendous emerging managers," he continues. "There were a couple of firms up in Greenwich, the FBI executed search warrants on them, some of those firms closed and lots of talented managers went elsewhere and started their own firms. So they are going to be scrutinized a whole lot more, but it's going to withstand the scrutiny going forward." ...

You can read B. Gravrand's full article here.

Most hedge funds fail but hope springs eternal

Most hedge funds fail, said John Lanchester in the The New Yorker. T......................

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. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  2. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  3. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  4. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  5. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the