By Claire Makin
Post-crisis, a new breed of asset managers has sprung up, with new ideas and ways of implementing them. One of these is London-based Falcon Money Management, which has a clear sense of its own identity and where it fits into the evolving fund of hedge fund space.
Michael Perotti, Falcon’s founder and chief investment officer, says that much of the funds of funds industry became the victim of its own success, commoditised and beta-dependent, and on those grounds recent criticism of the industry is warranted.
But Falcon has moved beyond this business model to view hedge fund strategies as a way of delivering defined return streams in a mixed-asset portfolio – no magic and no mystique. “It starts with our not being a hedge fund shop. We start off being an asset manager trying to achieve certain objectives,” Perotti...