Taproot Management, a new hedge fund with a planned $500m launch next year, is forgoing expensive portfolio managers in favour of a team of analysts, according to a report by Bloomberg.
The hedge fund aims to assemble a multi-analyst team of eight to focus on sectors including healthcare, industrial, technology, consumer and financial stocks.
The analysts will generate investment ideas and construct portfolios, bolstered by a proprietary technology platform.
Taproot plans to recruit senior analysts with six to 12 years of experience, offering them high-single-digit percentage cuts of the profits they generate. Employees will also have portable track records after three years.
According to a Bloomberg source, Taproot has secured backing from Jason Beverage, former CIO of Two Sigma Advisers.
Taproott was founded by David Lin, a former analyst at Millennium Management-backed Tamridge Capital and Larry Robbins’ Glenview Capital.
