Sun, Jul 3, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

50 South Capital & Preqin highlight emerging manager outperformance in a new report

Friday, November 29, 2019

Bailey McCann, Opalesque New York for New Managers:

New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% annually. The outperformance holds across strategies, indicating that investors are getting a premium for getting in early. Opalesque New Managers spoke with Director of Research for 50 South Capital's Hedge Fund Investment Team about the results of the study and about how allocators are taking a second look at early-stage funds.

"As a team, we considerably invest in emerging managers and we think there are a lot of reasons why you should. The study shows definitively that new managers consistently outperform more established funds," Frede said.

According to the report, emerging managers outperform established managers on a one, three and five-year basis with only slightly higher volatility.

Notably, the findings show that emerging credit managers also outperform established funds refuting a long-held belief among many investors that all the performance in credit is driven by blue-chip firms.

According to Frede, the latest generation of new managers tend to be higher quality than those previous upstarts. "The barriers to entry are much hi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  2. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  3. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  4. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year

  5. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve