A New Way Forward for Emerging Managers: A Multi-Strategy Approach for Cost Efficiency and Enhanced Investor Experience

The hedge fund industry has traditionally favoured large players with extensive resources, making it challenging for emerging managers to thrive. However, Noviscient’s multi-strategy platform is transforming this landscape by allowing smaller funds to focus on their unique investment strategies while benefiting from a centralised operational infrastructure. This setup enhances the investor experience by providing access to a variety of specialised strategies, each tailored to meet specific market opportunities and investor needs.

The Multi-Strategy Platform: Key Benefits

Our multi-strategy platform enables emerging hedge fund managers to leverage a centralised operational infrastructure tailored for diverse investment approaches. Here’s how it works and the benefits it offers:

1. No Upfront Costs: Emerging managers do not incur operational expenses; they are compensated solely through performance fees based on the profits they generate. This model allows them to concentrate on investment strategies.

2. Focus on Trading: By streamlining administrative tasks and providing standardised regulatory compliance support, the platform frees managers to dedicate their time and energy to developing and executing their trading strategies.

3. Shared Technology and Data Resources: Managers benefit from access to advanced technology and data analytics tools, allowing them to leverage powerful insights without the individual expense, enhancing their ability to make informed trading decisions.

The Investor Advantage

For investors, our platform offers a fresh approach to hedge fund investing:

1. Enhanced Transparency: Investors gain clear insights into the strategies of emerging managers, fostering trust and understanding that larger funds often lack.

2. Aligned Interests: Smaller funds typically have a natural alignment with investors, sharing in both risks and rewards. The platform’s structure further enhances this alignment by removing management fees and allowing performance-based compensation.

3. Increased Choice: Investors can access a diverse range of investment styles and strategies tailored to their risk tolerance and return expectations, providing greater control over their portfolios.

Building a Sustainable Ecosystem

This model not only reduces costs but also cultivates a supportive community for emerging managers. By lowering barriers to entry and facilitating growth, the platform promotes long-term success for both managers and investors.

Our platform is poised to reshape the hedge fund landscape by prioritising transparency, efficiency, and cost-effectiveness—ultimately benefiting both emerging managers and their investors.