With the funds of funds industry in its own state of flux the
passing away of its founding father Georges Coulon Karlweis at
the age of 84 makes us think about the origin of our industry.
A major figure in the world of finance and the right-hand
man of the late Baron Edmond de Rothschild, Georges played a
key managerial role at Banque Privée Edmond de
Rothschild in Geneva for several decades.
In 1969, Georges set up Leveraged Capital Holdings, the
first fund of hedge funds in the world. Forty two years ago,
the idea of allocating across several hedge fund managers to
create a specific "asset class" was revolutionary and allowed
more investors to access hedge funds.
An individual stock's specific risk can be mitigated through
the creation of a diversified portfolio, and this discovery was
crucial in developing equities as the asset class that we