Hedgeco Investments (HCI) was formed as a joint venture between Holding Capital Asset Management, LLC (HCAM) and Hedgeco,LLC in 2006.
HCI's investment philosophy and its experience, both gleaned from Holding Capital's investments is key to its competitive edge. The hedge fund seeding space is an area fast garnering interest from investors, but it is still considered relatively risky territory for most investors. A telling statistic in the 2006 Deutsche Bank Alternative Investment Survey revealed that whilst 75% of investors surveyed were willing to invest in a fund from day one, only 25% were willing to seed hedge funds. By contrast, HCI is an early mover in the seeding space with an open mind towards seeding managers without the impediment of institutional rules. In fact, HCI has invested in managers so early in their development that they had no fund infrastructure. The rationale is quite simple; most institutions want to participate in seed investing of funds but are bogged down by artificial rules that do not always make sense especially in the evaluation of a start-up fund. HCI can and will bypass those rules in its search for talent.
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