New Managers April 2012

47N Series
A new series: current corporate governance issues

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Corporate governance rests on three pillars

47 Degrees North Capital Management is a specialist alternative investment firm, and a pioneer in early-stage hedge fund investing. It was selected as one of three successful candidates out of 97 applicants to manage the emerging hedge fund managers program at CalPERS.

47N is a leading proponent of corporate governance in the hedge fund industry; so the objective of this series of articles is to discuss and inform on current corporate governance issues.

Fraser McKenzie

When we were asked by Opalesque to write a monthly column on the subject of emerging managers - or early-stage as we like to call them as some listeners tend to think emerging market managers - we quickly turned to the connection between early-stage managers and corporate governance. Of course, corporate governance is not specific only to young managers but it's true that, as investors, we have the most say on corporate governance matters early on in a manager's development.

First of all, let's be clear about whom we are talking; early-stage managers are typically those with less than a 3-year track record and under $500m in assets under management - although the definition may change under different circumstances. However, more important than a definition of track record and AuM is a manager's corporate culture and the ethos of their organization. This tends to define their attitude toward providing corporate governance protection f......................

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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.