A shift in the balance of power
The way in which managed accounts are negotiated, structured
and administered on a day-to-day basis is a telling indication
of the shift in the balance of power between investors and
single hedge funds that has gathered pace over the past 12-18
Underlying the relationship between investors and hedge fund
managers is an insistence that the underlying managers focus
exclusively on what they do best - which is (or should be)
generating alpha. "We manage the administration and control of
cash and securities," says Perkins, at Lighthouse Investment
Partners in Florida. "All we're asking our managers to do is
trade and generate returns."
Tony Gannon, Abbey Capital and Kelly Perkins, Lighthouse
Investors have plenty of tools at their disposal to ensure
that their managers do exactly what they are instructed to do.
Their chief mechanism is the Investment Advisory Agreement