FCA Sees Hedge Fund Seeding Environment Improving in 2011

Feb 14 2011 | 8:53am ET

Patric de Gentile-Williams of FRM Capital Advisors, a leading hedge fund seed investor, says the industry seeding environment will continue to improve in 2011.

The higher cost of launching hedge funds will increase the importance of strategic investors, says Gentile-Williams. Meanwhile, the quality of hedge fund manager seeking capital will also improve:

“The wave of proprietary traders spinning out on their own as a result of regulatory changes will increase the talent pool at the top end of the quality spectrum. With markets stabilizing, we also believe that more people already in the hedge fund industry will have the confidence to launch their own funds.”

Gentile-Williams says many 'new’ hedge funds are actually teams that have worked together for years and “have proven success in running money and controlling risk." Such teams, he says, are attractive to seeders.

“If the hedge fund industry continues to produce similar returns to recent years and the appetite for hedge funds continues,” says Gentile-Williams, “the prospects for seeding are excellent. Well-structured, smaller funds run by established teams are set to benefit. There are signs that investors are increasing allocations to hedge funds and diversifying away from the mega-size multi-strategy funds.”

FCA, part of London-based alternatives manager FRM Capital, had $290 million in assets under management as of October 2010.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.