Money managers under the microscope
Man Investments has invested another $50 mln into a start-up hedge fund, showing that, for those prepared to take the perceived risks, there may be good opportunities to back talented managers at the moment.
The firm’s RMF Global Emerging Managers seeding fund has backed Hong Kong-based Minerva Macro fund, run by ex-Fortress manager Stanley Ku, having last month put $50 mln with 5:15 Capital Management’s flagship fund.
Some hedge fund seeders believe that tougher fundraising conditions for boutiques, coupled with reduced competition as some banks have cut back their seeding, means those with the cash can get great deals with talented managers starting their own firms now.
However, seeding isn’t what it was in the ‘old days’ of the hedge fund industry (i.e. 10 years ago).
The shrinkage of the UK-listed banking sector is providing an interesting trade for Legal & General Investment Management’s $46 million Global Macro fund.
After some dramatic share price falls, banks now account for only around 10 percent of the FTSE 100. According to LGIM’s head of asset allocation David North, this means any potential damage of further bank problems to the index is likely to be a lot less from here onwards.