This article appears courtesy of Institutional Investor
Source: Money Management Letter
Emma Blackwell
Summit Strategies is strengthening its hedge fund manager research resources to assist its clients to make direct investments. Steve Holmes , president, expects the amount of client assets invested directly in hedge funds to double next year to over $1 billion and he expects to advise on the same amount in direct private equity investments. Holmes is paring down his investment consulting client list to five or six relationships to spend more time focusing on hedge fund research. The firm hired four alternatives manager researchers this year and expects to hire another four next year.
Institutions are increasingly choosing the direct route to have a customized approach and to learn from their hedge fund managers. Direct programs are more efficient and transparent, and more nimble in seeking out specialist opportunities, Holmes said. Selecting funds of funds is included in Summit's general consulting fee, but assistance with investing directly comes at an add-on price, Holmes said, declining to disclose it.
Summit has been a champion of consultant independence and Holmes is taking this culture into hedge fund manager selection.