Based on interviews with industry veterans including seeders, funds of funds, family offices, and attorneys, Peltz International came up with a list of five potential high quality managers following differentiated strategies.
- In three cases, the start-up managers have not yet launched. Two are expected to launch in Q4 2019 and one will launch in 2020.
- The founding managers have experienced pedigrees. Four have worked at a number of large hedge funds while one has been at large banks.
- The strategies are niche-oriented. While three are long/short equity, one is focused on ESG while another is focused across the energy chain. The third trades highly liquid US-listed equities. Another emerging manager takes a high yield fixed income approach in government sovereign debt in 15 African nations. Another manager focuses on distressed credit in legally intensive situations.
- Two of the start-ups have strong family office connections. One is housed in a wealth management firm while the other is backed by families co-investing. Another firm has the support of a seeder and a sovereign wealth fund.
The five firms, in alphabetically order by company name, are:
*Applied Data Analytics
*Blue Wave Global Investors
*Imara High Yield Treasury Fund
*Merewether Investment Management