Emerging hedge funds manager can offer higher returns for investors

Investors have shown a preference for the safety and security of brand name hedge funds. Allocating to emerging managers can reap high rewards if proper due diligence is followed.

Hedge funds have always been an industry of emerging managers. There is no magic formula for conducting due diligence on emerging managers versus larger, more established managers because the classic rules apply. One of the first rules is to remove size bias.

Frank Meyer, the founder and former chairman of Glenwood Capital, is known for making the seed investment in Ken Griffin to launch Citadel Investments. His experience applies to investing in more established emerging managers today.

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