Sat, Mar 28, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner