A new hedge fund is seeking to punch well above its weight with what it calls a “significant evolutionary advancement” in multi-strategy vehicles.
Evolved Alpha says it uses an open architecture to include potentially several thousand alpha-return managers on its flagship fund, which boasts more than 3,000 global securities in its portfolio. Under its system, Evolved Alpha will own the underlying securities, “thereby eliminating hedge fund fraud risk and increasing valuation certainty.”
The new firm is the brainchild of Jesse Redmond and Justin Pawl, formerly co-managers of the Alpha Titans Fund.
“We always appreciated the diversification, sophisticated risk management and nimbleness of multistrategy funds such as Millennium and SAC, yet realized the limitations in recruiting and retaining top talent to trade in-house,” Redmond said.
“In the aftermath of 2008, investors rightfully expressed concerns about the liquidity and opaqueness of hedge funds,” Pawl added. “Evolved Alpha specifically addresses these concerns by providing a solution that offers structural, strategy and risk management advantages relative to traditional multi-manager portfolios.”
Morgan Stanley serves as the new firm’s lead prime broker.