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Money managers under the microscope
Sowing seeds for a healthy hedge fund investment
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Further signs that, for those with cash to invest, there could be some great opportunities to invest in hedge funds.
Man Group’s RMF Global Emerging Managers portfolio has invested $50 million in 5:15 Capital Management’s* flagship fund and says the opportunity set has never been better.
The reason, according to Hans Hurschler, head of hedge fund ventures at Man, is twofold.
Firstly, many speculators such as hedge funds and bank prop trading desks have simply been wiped out or seen their firepower curtailed as a result of the credit crisis. This means less competition for those remaining funds.
Secondly, there are still few investors willing to commit capital, so hedge funds are often fighting over seed capital.
At last month’s GAIM conference in Monaco, FRM Capital Advisors chief operating officer Patric de Gentile-Williams told me a whole new opportunity set was opening up — funds that previously had seed capital but had seen it withdrawn.
There are still plenty of pitfalls in hedge fund investing, but there seem plenty of opportunities for those who can pick the right managers.
*For those who are wondering, 5:15 is named after the track on The Who’s 1973 album Quadrophenia.
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Very interesting article. The founders also worked to together at Brevan Howard’s US team before it was disbanded. There is an investment summary and more details on 5:15 on HedgeTracker.
http://www.hedgetracker.com/fund/515-Cap ital-Management