Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

What is the Profile of a Long and Short Equity Manager?

Long and short equity funds also come in all shapes and sizes. Investors can chose from a wide range of early stage funds run by newly minted hedge fund managers or seek the comfort and perceived safety of established funds run by managers with long track records and impressive pedigrees. Investors seeking alpha are often attracted to smaller funds and newer managers. Those seeking to invest large sums in strategies requiring scale may find themselves limited to the more established funds in this space.

The firm Edenbrook Capital Management is an example of a newly launched firm with a single fund that was launched in late 2011 and early 2012. The firm Algert Coldiron Investors is an example of an established firm with a long track record and institutional quality program. Algert Coldiron Investors is a firm whose partners have worked together for over 17 years and who manage several different types of funds within their core strategy. Renaissance Technologies is an example of a legendary quantitative investor founded by Jim Simons that has one of the longest track records and strongest pedigrees in the industry today.

Information on any manager that is registered with the SEC can easily be obtained from the SEC and is disclosed on each firm's Form ADV. Simply go to www.sec.gov/answers/formadv.htm to research any registered advisor, including those who manage hedge funds.

Algert Coldiron Investors (ACI)

Peter Algert and Kevin ...