Hedgeco Investments (HCI) was formed in 2006 to help seed and raise
capital for emerging hedge fund managers.
HCI's investment philosophy and its experience 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 is from a Deutsche Bank Alternative
Investment Survey that 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. In a post depression era,
this number has shrunk even lower. 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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