People always want to know about emerging managers
Katherine Hill, managing director at
Geneva-based Palladio Alternative
Research, conducts in-depth research for
investors of all types. She finds that if the
investor already has a deep understanding
of the strategy of the new fund, the fund
manager doesn't have to start from the
beginning. Also, the timing of the track
record is important. The most important
things to assess in a new manager,
according to her, are core competence
and operational set-up - not necessarily
performance. Furthermore, for investors,
choosing the right individual is more
important than the strategy of the fund.
Also, investors also love the idea of discovering new talent or getting in
early. Discoveries such that of ThirdPoint, which grew from $20m in 1996
to $1.9bn and has annualized 16%, or Lansdowne UK, which grew from
$890m in 2001 to $9.5bn and which has annualized 11%, or still, Brevan
Howard, which grew from $1bn in 2003 to $25bn, and with annualized
returns of 13% (figures from HSBC ), serve as great past examples.
Opalesque asked Katherine Hill to talk about her research procedures and
the trends she has been observing of late.
Opalesque: Do you research emerging hedge fund managers for institutional
clients or other clients?
Katherine Hill: The hedge fund research that I conduct can be applied to all
investor types, institutional clients but also high net worth individuals and
family offices. I found all investors are interested in emerging hedge fund
managers; they are not always ready to allocate to them but they definitely
want research on them.
The research that ......................
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This article was published in Opalesque's New Managers
a top-down monthly analysis, news and research publication on the global emerging manager space.