Emerging manager revival as alpha seekers turn to start-ups

Fri Jun 3, 2011



Investcorp white paper shows that managers of three years or less can generate average excess alpha of 130 basis points


Deepak Gurnani
As funds of funds are no longer likely to be paid for simply accessing brands, and as capacity at the brands hits saturation, the world is looking to the new generation of managers as a source of alpha. Testament to this is APG's backing of IMQbator to seed the stars of tomorrow as well as Investcorp's own efforts to seed managers, most recently signing a deal with Prosiris Capital Management, a New York-based hedge fund manager led by former Goldman Sachs managing director Reza Ali.

Prosiris will become the latest investment advisor on Investcorp's single manager platform, which has a total of $1.6 billion in client and proprietary assets under management. Investcorp will provide Prosiris with an initial investment and will also provide marketing and operational risk management support and oversight. Investcorp generally provides an initial investment ranging from $50 million to $100 million in funds to...

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