NY-based VanthedgePoint Group, Inc., an integrated financial services firm catering to emerging hedge funds, and G Squared Group Asset Management, a money management boutique, have launched White Hill Fund, a new fund of funds which will invest exclusively in select early-stage emerging hedge fund clients of VanthedgePoint Securities LLC, the wholly owned registered broker/dealer subsidiary of VanthedgePoint Group, Inc.
'By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,' said Gualtiero Giori, Managing Partner of G Squared Asset Management. 'This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due diligence work.'
Through White Hill Fund G Squared hopes to capture the alpha generated by emerging managers by investing in them during their early years, and deliver its investors outsized returns. Recent studies reinforce the widely, long held industry belief that emerging hedge funds outperform their older, larger counterparts.
Growing numbers of such funds have become clients of VanthedgePoint to enjoy cost effective brokerage services and to mitigate their operational risk, making VanthedgePoint a fertile ground for investors interested in finding talented emerging managers. White Hill will commence making allocations to select VanthedgePoint clients on 1 May.
'Identifying suitable sources of early stage capital is paramount to VanthedgePoint's specialized capital introduction program,' said Alexis Graham, Head of Capital Introduction at VanthedgePoint Securities LLC. 'We look forward to working with G Squared to identify promising hedge fund managers early in their lifecycle, and introducing those selected for inclusion in White Hill to seeders, funds of funds, family offices and institutions in our extensive investor network.'
White Hill Fund is a BVI-registered investment pool structured as segregated portfolio companies (SPCs), which allow the creation of multi-portfolio structures with segregation of assets and liabilities, such that there are no cross liabilities between separate portfolios within an SPC.
White Hill will analyze and select VanthedgePoint clients, and establish arrangements for them to manage separate accounts on behalf of White Hill. The benefit of G Squared's approach is that its investors gain exposure to emerging hedge fund managers through a customizable program that limits liability across their portfolio.
The G2 Group is a diversified money management firm with investment vehicles ranging from equity hedge funds to funds of funds to private equity funds based in the Cayman Islands. The G2 Group's equity hedge funds focus on technology, retail, and financials with special attention to small and mid caps.