Investment process

A successful seeding business requires a high degree of experience and technical ability. Hedge funds are one of the most entrepreneurial areas of the investment industry, with new firms and innovative strategies constantly being launched. Substantial resources are required to analyse a wide variety of new managers in an attempt to choose those who are most likely to deliver strong investment performance and grow into thriving businesses.

As a result, FCA has built a dedicated team which includes senior investment staff who have on average over 23 years of investment experience. In addition, FCA has access to the institutional knowledge of a leading hedge fund of funds with over 40 investment professionals covering the full spectrum of hedge fund strategies.

FCA’s objective is to identify superior seed investments in order to produce a diversified portfolio of investments in underlying hedge funds and interests in hedge fund management companies leading to enhanced returns for investors in portfolios it advises.

There are six stages to the FCA investment process.

1. Sourcing investment talent and opportunities
2. Evaluating investment opportunities
3. Evaluating the fit of individual opportunities with the existing portfolio
4. Negotiating deal terms with the manager
5. Assisting the manager in establishing or adapting his business
6. Monitoring the performance of the investment