Following a near two-year absence of in-person gatherings, the hedgeweekLIVE European Emerging Managers Summit returned to the Reform Club in London this week.
The event gathered together industry participants from across Europe to explore the major issues confronting new and emerging managers, who were described in one panel discussion as the “lifeblood” of the global hedge fund industry.
The day-long agenda of lively discussion examined how start-up funds can successfully navigate the assortment of challenges spanning the legal, structuring, operational due diligence, risk management, data, fees and fundraising spheres.
Attendees heard how cybersecurity and succession planning have emerged as key considerations for emerging fund managers in recent times, particularly in light of the upheaval brought about by the coronavirus pandemic, which have thrown up fresh headaches and hurdles relating to how firms communicate, both internally and with potential clients.
The event also offered a deep dive discussion of fund structuring trends, a central and sometimes tricky consideration for start-ups of all stripes. Speakers weighed up the broad spectrum of jurisdictions and structures on offer, and mapped out the main considerations and sequencing of the start-up process, with delegates hearing how the Cayman Islands remains a “tried and tested” jurisdiction for new funds.
Panelists also grappled with the ever-changing fundraising environment, and reflected on how the seismic events of the past 18 months have put the selection of service providers – be they prime brokers, administrators or software systems – into sharper focus.
Elsewhere this week, recent data from London-based equity research and short interest data provider Ortex Analytics shows hedge fund short-sellers have ramped up their bearish bets against Hargreaves Lansdown in recent weeks, with the UK retail-focused investment and advisory firm now the most shorted stock among FTSE 100 names.
Meanwhile, a new industry survey by IG Prime placed the sweeping changes brought about by Brexit and Covid-19 under the spotlight, and sought to unearth the potential investment opportunities on offer to hedge fund strategies as a result of the far-reaching shake-up to international trade over the past 18 months.
Hugh Leask
Editor, Hedgeweek