Financial News: Why a track record is not enough for a hedge fund launch

June 9, 2016

In the News

Cartica co-founder Steve Quamme provides insight into several key factors for a successful hedge fund launch. 

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Cartica Management, an activist hedge fund manager with more than $2 billion under management that invests in emerging markets, was helped to grow by landing a high-profile institutional investor early on. It also had name recognition – many of its staff that founded the firm in 2008 came from the World Bank’s International Finance Corporation.

It attracted some of the world’s largest pension funds as its first investors: the California State Teachers’ Retirement System and the California Public Employees’ Retirement System.

Steve Quamme, a co-founder of the Washington DC-based hedge fund manager, attributed this success to his highly differentiated offering and the fact that they were already well-known to these pension funds.

Quamme said: “A commitment by a respected and well-known institutional investor can help provide credibility, but every institutional investor will do its own work and must be comfortable with the offering.

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