Fund-Of-Hedge Funds To Add Another Principal, Seeks Candidates

Sep 14 2006 | 11:17pm ET

Fund-of-hedge funds firm Sag-gezza Investment Management is looking to add a third principal to its ranks to focus on business development and operations. Roger Beutler, principal of the San Diego, Calif.-based firm, said that he and his partner Patrick Morrell recently decided to search for another principal after finding that their capital raising efforts were going more slowly than originally anticipated.

“We have struggled raising money, as expected, so we sat down and decided we wanted to add a third principal, someone with gray hair,” said Beutler, adding that the ideal person would have 15-10 years of experience in the industry. “We are really looking for some-
one from a bigger firm that is close to retirement and is looking for a new challenge.”

Thus far, the firm’s flagship vehicle, Saggezza Alternative Investment Strategies, has $5 million in commitments, and Beutler said it needs to take in another $15-20 million before it is ready to start trading. But despite the slower-than-expected start, the Suisse-native is confident that the firm, which he-co founded earlier this year, will prove itself. In back-testing, the flagship long/short-biased vehicle, which is com-plemented with event-driven, relative value and other strategies, has a five-year annualized return of 15.74% (through July), and is up 5.12% year-to-date.

“It is really about having the connections,” explained Beutler, who focuses on researching potential funds in which to invest and performing due diligence on them.
“We [Beutler and Morrell] don’t focus on raising money, but in order to make the business feasible, we have to raise money.”

The firm has two pending agreements with third party marketers, but is waiting until the
third principal comes onboard before signing them. Beutler also investigated teaming up with an incubation firm, but he felt that their terms were generally “too aggressive.”

While Saggezza Investment Management is located on the West Coast, Beutler said the third principal doesn’t have to be located in California, adding that there are advantages of having someone on the East Coast. He added that anyone interested in finding out more about the position or the
fund should feel free to contact him via email (roger.beutler@saggezzaim.com).


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