Thursday, 2 July 2015
Last updated 24 min ago
Aug 25 2011 | 12:40am ET
Virginia's capital city has hired Protégé Partners as it seeks to add emerging hedge fund managers to its portfolio.
The City of Richmond Retirement Systems picked Protégé over Larch Lane Advisors, HFMWeek reports. The former's size, investment team, infrastructure and track record were the major factors, Agecroft Partners' Donald Steinbrugge, a member of the $550 million public pension's investment committee, told HFM.
"We believe that Larch Lane and Protégé were the two best in the industry and it was a very difficult choice which of the two firms to hire, because we thought very highly of both," he said. "In the end, the consultant knew Protégé better than Larch Lane, which tilted the decision to Protégé."
Steinbrugge added that Richmond believes that seeding funds are likely to outperform established hedge funds.
"There is a lot of opportunity in the marketplace for seeder managers because a significant increase in hedge fund launches, along with a number of larger banks closing down their prop. desks, has resulted in some very high quality launches."
May 27 2015 | 2:15pm ET
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