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Matthias Knab reports live from Geneva: Is it easy to find good managers today? Luke Ellis, managing director of FRM says picking good managers has gotten five times more difficult than it was a couple of years ago. Whereas some years back 5 managers out of 20 were considered good managers, he says if 1 out of 20 proves interesting, he would be surprised. Tanya Styblo Beder, CEO of Citigroup backed Tribeca Investments took the other side, saying she sees a higher proportion of good managers (or: traders) than two or three years ago. She said people have put on their “thinking hats” and come up with incredible and working strategies. She sees “loads” of brilliant managers.
(Editor’s note: I believe the two are located on different continents...)
Styblo Beder raised the question what must change in this industry to accommodate $2 trillion, which is the institutional money ready to flow into hedge funds. It is clear that the 25% attrition rate (hedge fund failures) has to improve, which will not happen just by adding more due diligence. Styblo Beder is asking for structural changes, and obviously with Tribeca she is working on a model for the future:
The industry has to develop large scale investment platforms, where hedge fund investments can be made faster and more efficient. A brilliant manager with a viable strategy may lose precious time with $500K or $1m allocations when building up the required 18 months track record. In market environments where speed is king, ...................... To view our full article Click here
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