New Holland Capital is preparing to launch a new equity investment platform aimed at portfolio managers seeking an alternative to the high-pressure, siloed culture of large multi-strategy hedge funds, according to a report by Bloomberg.
The $7bn manager has partnered with industry veterans John Gisondi and Mark Walker to establish New Amsterdam Principal Strategies, which will house eight to 10 equity sector specialists operating distinct, non-overlapping strategies. The platform is designed to offer greater autonomy, equity ownership and flexibility around capital sourcing than traditional multi-strat models.
Under the structure, New Holland clients will provide initial capital allocations, while portfolio managers will be permitted to run separately managed accounts for external investors and, under certain conditions, spin out with their track records intact. The model is positioned as a middle ground between rigid multi-strategy platforms and the risks associated with launching an independent fund.
The initiative reflects growing dissatisfaction among some traders with the rapid turnover and strict risk constraints that characterise the largest multi-strat firms. While these models have become dominant due to their ability to deploy scale efficiently and deliver consistent returns, their tight controls on risk, capacity and collaboration can limit flexibility for certain strategies.
New Holland said the new platform will recruit primarily through the founders’ existing networks, aiming to reduce hiring costs and create a more aligned culture. The business is expected to launch in the coming months and will complement the firm’s Plum Island platform, which focuses on event-driven, credit relative value and commodities strategies.
