AI Fund Awards 2017
12 Acquisition International - International Fund Awards 2017 IF17029 Best Multi-Strategy Fund (5 Years): HedgEmerge & Best Multi Strategy Manager - UK HedgEmerge HedgEmerge is a Multi Strategy Manager, specializing in selecting and allocating investment capital to small or emerging Hedge Funds. Quinton defines an emerging market and outlines the firm’s product offerings in this area, as well as various aspects of the firm’s approach. “At HedgEmerge, our current definition of an Emerging Manager is one whose AUM is under $100m. They often out perform their larger peer group and there have been many studies to demonstrate this. Our typical manager is an industry veteran who has considerable experience in running funds but has decided to set up their own fund and is operating with friends and family money. They all have good double digit performance with low volatility. We then ensure that correlations between our chosen managers are low to ensure that we have a fully diversified portfolio. This helps to manage our risk in a number of ways. “On the investment side, our typical Investor is a HNW or Family office. They are attracted to HedgEmerge for a number of reasons. Our policy of Zero Management fees is very attractive and in an industry where returns have at times been derisory at best, loss making at worst, management fees are under significant pressure. A fully diversified portfolio of Emerging Managers allows investors access to superior alpha generation without the volatility associated with one individual manager. The ability for the investor to do Due Diligence on us at HedgEmerge, and thereby know that our underlying managers have already been vetted by us, thereby saving considerable amounts of time and effort in trying to search out the suitable managers. “Currently our product offering centres around a portfolio of Long Short Equity managers who operate in liquid Global markets. We do have plans to expand into slightly different areas or versions of something similar, for example a Market neutral version of our current fund. Capital preservation is a central tenant our business and therefore we have built risk management procedures into the core processes of the firm. “From our systematic approach to manager selection, right through to the pre and post trade risk management software suite we use we have designed Risk Management to be at the forefront of our thinking. We operate with Managed Accounts which gives us live access to market risk at all levels of granularity, from an individual position, through to the top level of the consolidated positions of the whole portfolio. We recognise that our attractiveness to investors comes from a mix of parameters including performance and volatility. Therefore, our Risk Management techniques are aimed at reducing volatility over the long term and eradicating the possibility of serious loss.” Overall, technology, and specifically software forms the backbone of the firm’s Risk Management capability. This ensures that there are hard and soft rules in place, these form barriers and guides for many aspects of our business. The rules are designed to protect the firm and come from past experiences running proprietary trading businesses and Hedge Funds. The rules based systems and procedures are not just applicable to the Emerging Managers and their trading, and can also be found in other aspects of the business, ensuring that there are checks and balances in place where required. Despite this focus on technology, Quinton is keen to emphasises the fact that staff play a vital role in the firm and its success. “People are an extremely important commodity in our business and at HedgEmerge we look to build long term relationships with both our staff and our investors. This is based on bedrock of trust, honesty and integrity. For our team, we look to provide the right environment for younger team members to grow and be mentored by senior personnel. This builds relationships that last and helps to encourage individuals to add their personal qualities to the roles that they perform. “From an investor perspective, we also look to build long term relationships, communicating with them, listening to them and keeping an open door policy, so that they are able to approach us when they need to. We fully appreciate our role as temporary guardians of their funds and look to perform to the best of our abilities, managing risk, reducing volatility whilst offering growth in all market conditions.” What truly sets the firm apart, according to Quinton, is the firm’s innovative structure and unique place in the market. HedgEmerge is a multi-strategy manager of Emerging Funds. We invited CEO Quinton Wood to tell us more about the firm and the range of investment services and products it offers. Company: HedgEmerge Name: Quinton Wood Email:
[email protected] Web: www.hedgemerge.com
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