Wednesday, 24 August 2016
Last updated 12 hours ago
Apr 24 2007 | 9:33am ET
Financial services firm VanthedgePoint Group has teamed up with money management boutique G Squared Group Asset Management to launch a fund of hedge funds that will invest solely in emerging managers.
The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.
“By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,” said Gualtiero Giori, managing partner of G Squared.
“This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due diligence work.”
A study released in March by data provider PerTrac Financial Solutions shows that smaller, newer hedge funds perform better than older and larger funds. Specifically, hedge funds less than two years old have average returns of 17.5% a year, while those older than four years return on average 11.84%.
White Hill Fund is a BVI-registered investment pool structured as segregated portfolio companies. The manager of the new fund will analyze and select VanthedgePoint clients, and establish arrangements for them to manage separate accounts on behalf of White Hill.