Rothschild manager search nears completion
Rothschild has signed up three managers for its Total Return Fund, a multi-manager alternative investment fund.
Rothschild recently signed on Eclectic Capital Management, Fleet Investment Management and Jobbers Group after appointing Vertex Capital late last year.
Rothschild alternative investment associate director Richard Keary says the team is looking to appoint about eight managers to the fund in total, none of whom will be allocated capital above 20 per cent.
"There won't be equal allocations as some managers are greater risk, so risk is managed by allocating smaller parts," Keary says.
He says Rothschild hopes to have all managers for the fund by the end of February or early March. Once fully invested, the hedge fund will be offered as an excluded offer fund, aimed at high net worth individuals and institutional wholesale investors.
"There will be a minimum amount of money in assets required, for example a $10,000 retail investor would not be able to go into the fund," Keary says.
The whole process of choosing managers is detailed, says Keary and takes at least six months to field the various issues including legal, compliance, business plan and quantitative performance. A more formalised process of investigating the business then takes place.
"We see about two to three potential managers a week. They might have good investors but the style of investing might not be suited to us," explains Keary.
Working with Keary in the day to day management of the fund is Rory Lucas who spent several years as a registered trader at UBS Warburg and also as an equity market maker at Credit Suisse First Boston.
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