Tue, Sep 30, 2014
A A A
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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will

  3. Manager Profile: Leon Cooperman: The stock market is 'fairly valued,' but the bond market is 'overvalued'[more]

    From Businessinsider.com: Leon Cooperman of Omega Advisors and Howard Marks of Oaktree just finished a panel at Bloomberg's Most Influential Summit. Bloomberg TV's Stephanie Ruhle was the moderator. The two titans, who have known each other for 40 years, spoke about the market and the state of

  4. North America - Some newly registered U.S. hedge fund advisers are ‘cherrypicking’[more]

    From Reuters.com: Some newly registered U.S. hedge fund advisers are "cherry-picking" investments to showcase their performance and improperly changing how they value securities, an agency official said on Monday. Andrew Bowden, head of the SEC's Office of Compliance, Inspections and Examinati

  5. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar