Hedge Fund Directory

Hedge funds have an allure that attracts all financial experts who has belief in their ability and want to reach the top (while making a buck or two in the process). But then, the path to top of the tree and being a top hedge fund manager is not easy and the beginning is especially difficult for new comers. For every aspiring Hedge fund manager, one of the tougher assignments is to get the initial capital that can provide them with a stable platform. To get this capital is easier said then done but there are number of hedge fund seeders who are on lookout for the next big thing and willing to take risks on right managers.

These seeder firms have their own investment strategies as selection criteria. The article “Hedge fund Seeders: Looking for right fit” (http://www.finalternatives.com/node/3444) has detailed information. Some of the seeder funds go for specific strategies while others bet on the talent of the managers.

“Some seeding firms focus on plain-vanilla strategies, such as equity long/short. Simon Clowes, a partner at VCM Fund Management, said his firm specifically focuses on equity and derivatives strategies, including event-driven or special situations, statistical arbitrage and futures-based strategies. Last year, VCM entered into a joint venture with Robeco to launch an emerging manager platform and a fund of hedge funds, the Robeco VCM Emerging Managers Fund. The platform, which will allocate up to €20 million (US$29.5 million) per underlying manager, shares in a portion of the management and performance fees depending on how much seed capital, marketing or operational resources they’re looking for.”

“Other firms take a much more opportunistic approach to sourcing managers. For SkyBridge Capital, it’s all about talent. “In real estate, it’s location, location, location, and in the hedge fund industry it’s talent, talent, talent,” said co-founder Anthony Scaramucci, who added that the firm has been involved with cash-strapped managers as well as better-capitalized ones.”

Such kind of partnerships have positives for both the sides. The aspiring managers not only get the money but they also have the benefit of the experience and advice along with marketing expertise of the seeder funds. On the other hand, Seeder funds have opportunity to benefit from the fresh talent in the field and also possibility to get more returns for their investments.