Fund Be Nimble, Fund Be Quick

March 01, 2012   Anastasia Donde


Fund of funds Prisma Capital Partners leaps over the competition by investing in smaller managers and customizing clients’ portfolios.

 

Girish Reddy, Prisma Capital Partners: It was very difficult to hide in 2011 (Photographs by Axel Dupeux)

Many institutional investors have been flocking to larger, well-established hedge fund managers and investing in them directly. But Prisma Capital Partners, a fund-of-funds group in New York that has been investing with smaller managers since its 2004 founding, takes a more nuanced approach to fund size, and that has helped it buck the trend. The firm often scouts for smaller managers that are nimbler than their larger counterparts and even gives some of them capital on day one, though Prisma doesn’t seed new managers. Girish Reddy, managing partner and founder of the firm, says his portfolios are now more heavily skewed than they once were toward larger ($1 billion and above) managers, but he points out that Prisma helped many of these managers get their start.

Prisma was a day-one investor...

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