EGFS is seeking to provide traders and money managers with new Assets Under Management (“AUM”).
Through its affiliates and partners EGFS has extensive capital available to allocate to traders and money managers willing to augment their capital under management with new AUM to prove their trading strategy and, based on successful performance, allow EGFS to assist in growing the AUMs of those selected by EGFS.
In choosing hedge funds or money managers to seed and support – besides evidence of performance – EGFS’s qualitative criteria include the following:
- The manager must be highly ethical.
- The manager is willing to grow soundly with a good foundation. We are wary of people who want to grow too fast.
- The manager must put investment results and client interests first. A responsible fiduciary.
- We prefer the manager to have a strategy or investment approach that seems transparent, has good risk controls and makes sense (although we do not exclude black box or trading strategies with enough data points).
- We are normally reticent about managers who are over confident or arrogant. These reflect a lack of understanding of the vagaries of the investment process.
- We like managers who are collegial and listen to input.
- We like managers with a long term horizon and view – looking ahead 10-20 years as regards development of client services and their own businesses. (We do realize many startups, however, are more focused on making a living during the first couple of years).
- The manager should have most or a good share of his or her liquid net worth (if any) in the fund managed.