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09 June 2022       Hedgeweek

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As the hedge fund industry continues to grow and evolve, and some established firms take a step back or convert into family offices, the fortunes of the next generation of managers are coming into sharp focus. Many larger hedge funds may have weathered the storms of recent years, but start-ups face an ever-expanding array of hurdles. In this latest Hedgeweek Insight Report, we explore how early-stage managers have fared. The insights within are drawn from a Hedgeweek survey of 55 emerging and established hedge fund managers, a series of in-depth interviews with industry participants, and further background research.

Travis Williamson, head of hedge fund investment due diligence and partner at Albourne, argues that emerging managers can also offer investors alternative benefits. “Emerging managers are often sought for diversification, not just within the overall portfolio, but within the alternative sleeve of a portfolio. The immediate question is: what does this emerging manager bring to my portfolio to warrant taking the start-up risk? Often, start-up managers have brought novel approaches to ESG and implementation to the investment process,” he explains. He adds that Albourne’s clients are increasingly demanding diversity and inclusion, ESG and protocol questionnaires, all pointing to a desire for mission-based investing as well as increased transparency.

For the full report, please click here.

For a summary of the report, see this Hedgeweek article.