|
|
From Kirsten Bischoff, Opalesque New York:
Our “Into the Fire” series, which features profiles of managers who launched into the global financial crisis, will continue next week.
Hedge fund managers are on the hunt for assets, and many funds of funds are beginning to view seeding as a way to find moderate success during an otherwise abysmal time. Seeding harkens back to what fund of funds used to excel in: finding unknown managers and securing a space in that future success. In return, investors hungry to participate in hedge fund success stories are enticed by the thought of returns driven by the extra slice of ownership of a manager who might one day be the next Paulson or Tepper.
Seed funds are also taking shape in the form of in-house investment vehicles at major institutions such as NY State Common Retirement Fund, CalPERS, and the UK pension fund Railpen – all of which have recently launched seed vehicles.
Some see seed vehicles as a way to help make up enormous performance losses. However, while new managers have historically been shown to outperform their larger, more established counterparts, it remains to be seen if institutional investors will be able to overcome past biases towards established funds.
Or, as Barclays Capital stated in their recently released research on seed funds, “Consequently, it is hard to say whether they [institutional investors] are committe...................... To view our full article Click here
|
|
RSS
