Our Approach: Sub $100m AUM
Our approach is to target new and emerging managers, specifically with AUM’s which are smaller than $100m. These managers tend to work harder and make efficient use of their capital allocation. They are nimble in the market and can take advantage of situations which sometimes larger managers cannot pursue. Funds which have large AUM’s collect very large Management Fees, which tend to make those managers more complacent and less efficient. The efficient use of capital and a conservative approach to risk coupled with a fee structure that rewards performance, ensures that all parties interests are aligned. We carefully select funds which have low correlations with other funds in our portfolio and also the market, have low drawdowns, (typically less than 5%), and good performance statistics. Sign up to receive our monthly report for more information. Contact Us
Equity focused, we look for smaller managers who can demonstrate the key qualities which we require. These include;
- Consistent track record
- Previous relevant experience
- Low draw downs, less than 5%
We do not pay our managers a Management Fee based on the percentage of funds allocated to them but we do pay a higher performance fee. This aligns our interests with theirs. Once identified, extensive due diligence is completed prior to any decisions regarding a potential allocation to the new manager.
HedgEmerge offers Investors the opportunity to invest in our portfolio of Emerging Fund Managers with one single investment. This reduces the amount of time an Investor would spend trying to identify suitable managers and do their own due diligence on each manager prior to making an investment.
By investing in our diversified and uncorrelated portfolio of managers, HedgEmerge is able to offer superior returns coupled with a reduced risk profile. This is illustrated by the results which we have generated from our portfolio over the last 5 years.
Our website is in the public domain yet contains confidential information; therefore we do not disclose the identity of our managers however we are happy to discuss this further with potential investors.
The investment opportunity offered by HedgEmerge is aimed at HNWI’s, Family Offices, Foundations and Endowments and existing Asset Managers.
HedgEmerge is seeking additional investment into it’s portfolio of managers. If our risk and return profile is of interest, please contact us for further information. Contact Us
Risk Management is central to HedgEmerge’s business model and a core tenet for Capital Preservation. We operate in liquid markets and our technology platform allows us to drill down through the overall portfolio with increasing granularity, down to individual positions. If required, we are able to execute trades in order to close a position or portfolio down. We manage risk on a number of different levels, and ensure that our post trade analysis is comprehensive. As part of our due diligence on each fund, we look closely at pre-trade risk on the trading platforms, rule based limitations such as size of position, compliance with market rules such as short borrowing and other important risk related issues.
A key part of reducing risk, is ensuring all information is captured accurately and in a timely manner. Therefore our technology solution and our Prime Broker are integral pieces of the success of HedgEmerge. We are working towards having agnostic risk systems that capture information from a variety of Front Ends. This ensures that Fund Managers work on a platform which suits their needs. Our Middle and Back Office systems and reconciliation software ensure that accurate information is communicated to all relevant parties at all times.
HedgEmerge is actively seeking new Managers who match the criteria in the Manager Selection section. For a confidential discussion with regards to how the HedgEmerge business model works from a Manager’s perspective, please contact us for further information. Contact Us