By Claire Makin
Pine Grove Asset Management's president, Matthew Stadtmauer,
has strong views about what it takes to run a successful fund
of funds business in today's hostile environment. "You have to
have a clear value-added. If you can't explain to a client in
two minutes how you are distinct from other funds of hedge
funds, you aren't going to be with that client," he says.
Pine Grove manages $960 million from offices in New Jersey
and Manhattan. From 1994 to 2011, the company was owned by its
founder, Arthur 'Art' Williams (now chairman), a distinguished
figure on Wall Street for more than 45 years, who devised its
conservative investment philosophy. His book, Managing Your
Investment Manager, is now in its fourth edition.
The firm's approach is based on avoiding eight common but
distinct types of risk - both market and trading risks....