By Claire Makin
At Geneva-based Fundana, the principals have hit upon a way of wringing the best returns out of their managers – invest early and exit when they get too big.
Dariush Aryeh, who co-founded Fundana with Thomas Alessie in 1993, cites a string of top-performing names, some of which Fundana selected when the ink was barely dry on the managers’ offering documents.
They include John Thaler’s JAT Capital, Wayne Cooperman’s Cobalt Management, Tye Schlegelmich’s Sonterra Capital, and Senator Investment Group, run by Alex Klabin and Doug Silverman.
Spotting the next big name is a sort of holy grail for allocators – an elusive quest with huge potential rewards but a lot of disappointment, and even danger, along the way.
But Aryeh, who is chief investment officer, claims that Fundana’s approach vastly reduces manager risk in a fund of funds portfolio. It does this by creating...