Topwater: A risk-based managed account platform can remove
a lot of the business risk
Bryan D. Borgia
Bryan D. Borgia, Principal, at Topwater Capital
Partners LLC, an investment manager based
in South Norwalk, CT, contracts managers
to run capital on managed accounts. Those
managed accounts, which are "risk-based,"
go on a platform, while Topwater takes care
of the setting up and the paperwork. As the
environment for new fund managers is harsher,
many are happy to find a home in a platform,
and so Topwater benefits from that.
Furthermore, some of the portfolio managers are simply not as good
managing a business as they are at running money, Borgia said in an
Opalesque TV interview last year. Even if most of them are seasoned
individuals, they usually are specialized in the money management side.
Topwater is not a traditional seeder. "We are lumped into the seeding
bucket because we can be a fist mover," he explained. Besides, he added,
Topwater’s model is very clean, as the firm only makes money when the
managers make money.
Borgia said in a more recent interview for New Managers that it is not
necessarily the case that smaller and newer managers outperform the
large ones (even initially), and that managed accounts are a luxury. Read all
about it here:
Opalesque: Please remind us what a risk-based managed account
platform consists of.
Bryan Borgia: It is a fund that is set-up very much like multi-strat hedge
fund, whereby you are allocating to......................
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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.