Nat Kellogg Quoted on Hedge Fund Manager Research

June 20, 2016

On June 20, Nat Kellogg, director of alternatives, was quoted in a FundFire article on hedge fund manager research and the recent reemergence of investment executives that were once banned from managing external assets. Hedge funds with ties to formerly barred principals are attracting more scrutiny from investment consultants — with some likely staying away from these types of firms altogether.

“Generally speaking, where there’s been an individual who’s had an issue with a regulatory body, our view is that there’s plenty of fish in the sea,” Nat explained. “That’s not saying they wouldn’t be good for investors, but we just think we’ll be able to find someone who’s equally good with a story not quite as hairy.”

Additionally, added due diligence from investment consultants may deter hedge funds with complicated stories from raising institutional money in the first place.

“My sense is that such firms won’t be targeting the institutional world, but rather the ultra-high-net-worth and family office segment,” Nat said. “There’s plenty of money in that space and those investors have more of an ability to get comfortable because they only have themselves to think about if something goes wrong. It’s institutional investors who are fiduciaries, managing money on behalf of others.”

To read the article, visit the FundFire website (subscription required).

For more on Marquette’s alternative manager research philosophy, view the video Hedge Funds – Still a Good Idea? and webinar Investment Manager Search 2013: Fiduciary Duty Deep Dive.