Fund of Hedge Funds

Playing the long game reaps rewards in hedge fund seeding

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FRM Capital Advisors' FCA Catalyst Fund is proof that in the current climate, seeding is a strategy that can pay long-term dividends - and with minimal interference in managers' corporate governance

FRM Capital Advisors' FCA Catalyst Fund is proof that in the current climate, seeding is a strategy that can pay long-term dividends - and with minimal interference in managers' corporate governance

By Claire Makin

On 1 January 2009, as investors continued to flee from hedge funds, Patric de Gentile-Williams sat down with colleagues to ask a serious question: Does hedge fund seeding make sense in the face of a contracting industry? To find out, they jumped on planes to poll investors, and soon had their answer. "It was clear to us by the end of the first quarter that there