Successful mutual fund investors, who feel confident about their abilities and have the distinction of being one of the brightest stars at their firm, have the potential to also become the best hedge fund managers. Their work ethic and vast network gives them the ability to help wealthy investors get the largest returns possible. The risk involved is larger than established funds, but newer hedge funds have a tenacious drive to pursue success and alpha. The fund was founded by having a different perspective and an insight that is intuitive and sensible. These key differences and the passion to gain a share of the hedge fund market makes newer hedge funds a better buy in the short run, offering more alpha than traditional counterparts. Only a few members become successful in this competitive field, mastering economic movements in moments, which is riskier than long-term investments.
The few members that make this elite achievement are awarded by having the distinction of being known as super capitalists, extolling every virtue of the word. The same aristocracy that praises them on their returns and market intuition, is also worried about the amount of money these new members are making, changing the composition of class and allocation of wealth. This uneasiness comes from the level of respect these young men and women instill. They want change and know exactly where to look for the next bright idea and investment. They are our modern day innovators.
Here are five individuals that are rising stars in the hedge fund industry who have the charisma and talent it takes to become nothing short of remarkable:
Michael Platt
– After leaving JPMorgan, Platt went out to co-found is the
cofounder of BlueCrest
Capital, specializing in fixed income and currency
markets. Currency is one of the riskiest assets to
hedge. Betting on the futures of a currency takes a top
down approach, and also understanding economic forces
that are driving currencies to their rates. BlueCrest
Capital has invested in off shore companies specializing
in the tech sector. In 2003, the Man Group, the largest
hedge fund in the world (based on public statements),
bought a 25% stake in BlueCrest, in hopes of
diversifying its own strategy and alleviate risk.
Anthony Clake – At only 26, Clake is one
of the youngest hedge fund managers in the field. His
intellect has given him the ability to become a partner
with
Marshall Wace, which has been accredited for developing
the Trade Optimized Portfolio System (TOPS), which ranks
research in an algorithmic fashion. This system has also
come under scrutiny from other hedge fund managers who
claim it gives Marshall Wace an advantage and insider
information. This argument is weak considering that all
hedge fund managers have the ability to gain the same
information. The management of new information is the true
strength of Marshall Wace, not the information itself. With
such an effective system, expect Clake even at his young
age to take the helm of Marshal soon.
Jason Ader – Named as one of Forbes best
analysts, Ader specializes in hospitality and gaming
sectors. Ader has been known to visit potential investments
in person and analyze the quantitative aspects regarding
the building, employees, and overall likeability compared
to competitors. In addition to quantitative analysis, Ader
understands that the success of any hospitality operation
depends on the service, the presentation, and the amenities
it provides. He has founded Hayground
Cove based on this premise. The amount of
interaction he has on the ground floor is in sharp
contrast to others in the industry who simply remain in
front of a spreadsheet.
Erin Sullivan – As one of the most
talented portfolio managers at Fidelity, Sullivan left the
Fidelity Aggressive Growth Fund to create Spheric
Capital Management LLC. She left on a great note;
Sullivan led the FDEGX to epic heights, giving investors
a 103% return. Spheric Capital has stakes in technology,
pharmaceutical, and telecommunications in prominent
companies. Sullivan also shatters the conception of a
glass ceiling by creating the female presence that is
all but absent in this occupation. Look for her fund to
grow substantially, but not as quick or as fast as the
FAGF.
Zachary R. George – George understands
that controversy gets attention, which is why his hedge
fund is aptly named Pirate
Capital. He may be young, but his business
philosophy is savvy and believes that if a goal is
clear, it should be met. There are no excuses in hedge
funds, no mistakes, only failures. George understands
this cutthroat environment like the best of them, which
is why he expects the same for everyone working along
side him and under him.
This list only comprises a few managers of this booming
sector. With over 7000 hedge funds and counting, the hedge
fund market, which is usually veiled in secrecy from the
public, is now becoming exposed due to the larger and
bolder moves hedge funds are making. Talented individuals
such as those listed above, will help investors gain
maximum returns, while pocketing 30% on performance fees
alone. Just because they might not drive a fancy car and
live a modest lifestyle, does not mean they lack power.
They just refuse to let it get to their heads, which is the
best way to attain their goals and retain their stature as
some of the most influential men and women on Wall St.