Agecroft Partners is seeking to add a hedge fund to its manager line up during the first quarter of 2014 and is beginning a due diligence process by identifying mangers who meet the firm’s selection criteria.
The selection process includes sourcing initial candidates through referrals from investors and prime brokers, trade publications, direct contacts from hedge funds and screening multiple hedge fund databases. The universe of candidates will then be narrowed down through a combination of quantitative and qualitative screens.
Quantitative screens include AUM of at least USD75m invested in the strategy and risk adjusted performance near the top of their peer group. Qualitative screens focus on the organisational infrastructure, quality of investment teams, investment process, risk controls and quality of service providers.
Agecroft Partners will perform onsite due diligence with approximately half a dozen firms in January with the objective of adding one new fund by the beginning of the second quarter.