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From Kirsten Bischoff, Opalesque New York: The events of 2008 may very well be the catalysts which usher through the next phases of evolution in the hedge fund industry. Fund of hedge funds in particular, with the exception of a few, struggled to show investors the benefit of an extra layer of fees and may be one of the first victims of this evolution. Clamoring to replace them are separate account platforms which claim more flexibility to individual investor needs and more transparency to individual investor demands.

“With hedge fund managers suspending redemptions, putting up gates, using side pockets among other issues, managed accounts are becoming an important tool for investors,” says Monique Miller, CEO of Patel Weisman LLC, WR Capital Management’s consulting division. “Managed accounts are an ideal solution for providing investors transparency and liquidity. They are a midway point between what investors are looking for and what managers are willing to provide.”

WR Capital runs a platform of separate accounts in addition to managing a fund of funds vehicle. The firm was founded by Walter Raquet in 2004 and until April 2008 managed internal partner assets of $500m. In a trend seen by few investment managers this year and indicative of the growing interest in the liquidity and transparency offered by separate account platforms WR Capital saw its assets more than double to $1.2bln in between April and YTD 2008.......................

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