What sets us apart
With our origins as both a consultant and investor, hedge fund investing is encoded into our DNA. With over 28 years’ hedge fund research and investing experience, we believe that our accumulated knowledge combined with our flexible approach to hedge fund investing offers unique advantages to our clients.
We always seek to be differentiated and original in our thinking, while ensuring that our clients remain at the centre of everything we do. This means we are constantly driven to deliver the best performance, the freshest thinking and the newest approaches. A culture of innovation and a drive to stay ahead of the curve is reflected in every aspect of our business.
*Information as at 30 September 2020
- Refined investment approach following the financial crisis
- Began providing seed capital to new managers
- Significant refinements to our investment approach were implemented over the course of 2008, with a focus on restructuring our relationships with hedge fund managers to improve terms and governance of our investments. These changes also allowed us to further utilise our managed account platform, significantly expanding our portfolio risk monitoring and reporting capabilities.
- We began providing seed capital to new and emerging managers to further diversify our hedge fund offerings for our clients.
- Launched managed account platform
- In 1998, FRM1 launched its managed account platform as a portfolio management investment tool, allowing access to differentiated return streams, additional transparency and improved risk management. This mindset continues today with a managed account platform that spans all hedge fund strategies, and has resulted in FRM running one of the largest investment led buy-side hedge fund managed account platforms. Approximately US$18.7 billion of our assets under management are attributable to managed accounts2.
1 Through Man Group’s legacy Multi-Manager Business.
2 As at 30 September 2020.
- Expanded into US distribution market through investment in US multi-strategy and single strategy portfolios
- Further enhancement of Clarus’ capabilities
- As part of our continued goal of further enhancing FRM’s geographical footprint in North America, we acquired the Merrill Lynch Alternative Investments’ portfolio of multi-strategy and strategy focused funds of hedge funds in May 2015. This acquisition further enhanced our efforts to offer clients a wider range of investment opportunities through our open architecture, multi-manager access platform. Read the full press release here.
- In our continued commitment to provide investors with the deepest levels of transparency into their hedge fund investments, we commenced work on augmenting Clarus’ capabilities to include commingled funds and other asset classes.
- Expanded into US market through investment in US credit focused strategies
- Development of co-investment opportunities
- In August 2014, FRM combined with Pine Grove, a US-based fund of hedge fund manager. Pine Grove further enhanced our suite of investment offerings, including SEC-registered US 40 Act funds and complementary products. The portfolios invest in Relative Value and Event Driven strategies, currently with a focus on Credit, and leverage FRM’s strengths in risk management, risk analytics and managed accounts. Read the full press release here.
- Development of our managed account capabilities and offerings continued as we began working with certain key approved funds in order to construct and implement more concentrated and customised access to their highest conviction ideas, creating co-investment vehicles. These vehicles are available for use within our portfolios, but are also open for clients to access. Typically, the vehicles aim to benefit from short term market dislocations and events.
- Combined with Man Group's Multi-Manager Business
- In July 2012, Man Group acquired FRM and combined it with Man’s existing Multi-Manager Business. The aim of this partnership was clear: to build scale in operations and investment research. The business, operating under the FRM brand, combined our capabilities in commingled, sector-focused and large customised portfolios, with Man Group’s capabilities in managed accounts, risk analytics and position level data. Read the full press release here.
- Managed account platform opened up to infrastructure investors
- Launch of Clarus, our online reporting and analytics tool
- Continued investment and development of our managed account platform resulted in the first infrastructure investor selecting FRM to launch tailored managed accounts to suit their investment requirements. The client was given access to our full infrastructure capabilities and Clarus.
- Clarus is the proprietary online reporting and analytics tool developed by FRM for internal and client use. Clarus offers our clients unparalleled levels of transparency into their hedge fund investments. The tool provides our specialists in portfolio construction with all the data they need to make decisions on how to be combine fund managers. One of our great strengths is that access to this system is provided directly to clients, enabling them to efficiently access and analyse hedge fund data. Further, the Clarus platform has the ability to aggregate clients’ other holdings for aggregated analysis and reporting.
- Further expansion of strategy-focused hedge fund solutions for our clients
- Entered into a strategic relationship with SMTB
- Awarded first managed account advisory mandate
- To address both internal requirements and investors’ needs to diversify their hedge funds holding, FRM launched further strategy specific solutions, building a wider range of capabilities and solutions.
- Following expansion into Japan, in August 2005 FRM entered into a formal and significant ongoing strategic partnership with The Sumitomo Mitsui Trust Bank (SMTB), the company’s partner in serving Japanese institutional investors.
- We continued to develop our managed account platform capabilities, gaining our first managed account advisory mandate.
- Developed MSCI hedge fund indices in cooperation with Morgan Stanley
- Established one of the first independent Operational Due Diligence teams
- Launched first single strategy focused product
- FRM’s continued investment in hedge fund research gave rise to an industry reputation of excellence and deep understanding of hedge fund strategies and return drivers. The firm was selected by Morgan Stanley Capital International (MSCI) to partner with and develop MSCI hedge fund indices. Our hedge fund expertise combined with a database of unparalleled depth and quality made FRM a natural choice.
- As investors continued to increase their allocations to hedge funds, we made significant investment into improving the firm’s hedge fund capabilities, in particular in the areas of global investment and client service infrastructure. In the wake of the financial crisis, FRM was one of the first asset managers to create an independent Operational Risk team, a business unit focused exclusively on assessing operational risks within hedge funds being considered for investment by FRM.
- Further extension of our commingled strategies range continued with the launch of our first single strategy focused hedge fund solution in 2004. These products cater for different risk/return strategies and seek to leverage the best ideas of our managers and research analysts.
- Launched first client partnership solution
- Launched first flagship commingled portfolio
- Founded in London as a hedge fund research consultancy
- Hedge Funds Demystified published in cooperation with Goldman Sachs
- FRM was founded as a hedge fund research consultant at a time when hedge funds were widely considered to be risky and opaque. To increase investors’ understanding of hedge funds, we conducted research to help illustrate the potential downside risk management benefits and attractive return characteristics of hedge fund investing. The result of this in-depth research was the development of one of the industry’s most extensive sets of quantitative tools and hedge fund databases.
- With our growing reputation as a world leader in studying and classifying drivers of hedge fund returns, Goldman Sachs sought out FRM to be its partner in the development of a seminal piece of work, Hedge Funds Demystified. This was one of the first studies to classify hedge funds and explain how portfolios could be constructed aiming to deliver returns that met institutional needs.