You gotta have a gimmick – or so the song goes. According to the NY Times’ Dealbook, amid the post-Madoff wreckage, some funds of funds are adapting their strategies and enhancing their services. They’re also looking to new lines of business, as investors seek out lower fees and greater protection in the aftermath of the crisis.
Dorset Management, a New York-based asset manager, is planning to start a commodities-focused fund of funds in the coming months, according to a person with knowledge of the matter. Some funds of funds are marketing so-called seeding platforms, which buy pieces of hedge funds in their infancy.
Liongate Capital Management, which runs about $3.2 billion, focuses on hedge funds with $500 million to $2 billion. It allows the firm to distinguish itself from larger rivals, whose asset loads make it difficult to invest in portfolios of that size. Liongate, which has had annualized returns of 9.45 percent since 2004, has pulled in about $2 billion since the financial crisis, reaching a new peak in assets.
SkyBridge Capital, the firm run by Anthony Scaramucci, is trying to attract assets with a different type of vehicle that has a lower minimum. Clients pay only $50,000 to get access to a portfolio that invests in multibillion-dollar hedge funds like Third Point and SAC Capital. Over all, SkyBridge manages about $8.5 billion across its funds.
While investors must still earn at least $200,000 a year or have a net worth in excess of $1 million, it is a far cry from the $10 million minimum investment required for many top hedge funds....
There's more. Find it at http://dealbook.nytimes.com/2011/08/11/postcrisis-new-investment-tactics-to-lure-the-ultra-wealthy/
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