Thu, Jun 30, 2016
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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.