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Against the backdrop of difficult market conditions and growing investor…
18/05/2011
Almost six months ago, the beginning of the new year saw 2011 branded, in some quarters, as the year of the launch. This was to be the time when emerging managers’ hunger for seed capital, and fresh allocations in general, stood a good chance of finally being satiated.
If this brand had started to grow stale, news this week of Goldman’s seeding plans should revive the concept as one of the key themes of the year. The notion was also reiterated at the third annual SkyBridge Alternatives (Salt) Conference, which took place last week at the Bellagio in Las Vegas.
Delegates at this thought leadership event predicted that the next few years will see the emergence of the ‘second generation’ of hedge fund businesses – a collection of younger professionals, already active in the space, who have spun out of other funds or are gearing up to start their own firms.
According to Anthony Scaramucci, managing partner of SkyBridge, their timing is perfect. “We are in the fashion business as opposed to the investing business,” he told HFMWeek. “For the past three years, emerging managers have been out of favour, yet consistently posted high returns.”
Scaramucci points out that the new season’s must-have, as it relates to capital allocation at the margin, is all about further allocations to smaller managers. “Investors need to diversify and will start to fan out to smaller managers because they are doing better,” he believes.
With the industry back up to its previous highs, the majority of its practitioners rendered equally accountable by SEC registration and growing investor demand for an alternative source of returns – fickle fashion, it seems, could well become a long-term trend
07/06/2012
Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…
31/05/2012
The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…
02/02/2011
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
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