Why managed accounts are not suited to everybody
For all their recent popularity, it is widely recognised
that managed accounts are by no means a panacea that will
provide every investor with copper-bottomed protection against
all the risks associated with hedge fund investment.
Sean McGould, Lighthouse Investment Partners, Richard
Tomlinson, Tomlinson Investment Consulting and Marc Goodman,
Nor are managed accounts seen as an appropriate option for all
funds of funds, for several reasons. Foremost among these are
the upfront costs associated with setting up managed accounts
borne by the manager.
"Clearly there are significant costs involved in building a
managed account platform, which will discourage certain
managers from pursuing it," says Sean McGould, co-CIO of
Lighthouse Investment Partners. "Over the years, we have
beefed-up our operations team, which now looks more akin to a
multi-strategy fund than a traditional fund of funds. There is
more work involved in processing...