With the markets in constant flux following a volatile year-end, an even greater premium is being placed on skilled traders who can manage investors' assets. Couple that with the fact that many hedge fund investors react to such tumultuous markets by parking their money in established funds that can evoke extensive track records and deep operational infrastructures, and the result is a climate in which it is as challenging as ever for new trading stars to emerge.
Yet traders indeed continue to hang their own shingles in the hedge fund space, as the lure of greater autonomy, greater flexibility and, of course, greater potential rewards continues to draw the best and brightest from a variety of areas -- both within and outside the financial services industry. Even many large institutional investors increasingly have sought to access new talent in recent years, not only by hiring new managers, but also by establishing dedicated emerging-manager programs that give them greater exposure to emerging hedge funds.
While the risk inherent in emerging hedge funds can be high, numerous industry studies have found that returns for new hedge funds run higher than for larger, longer-tenured funds -- in part because, as in many sectors, nimble and driven entrepreneurs can generate spectacular results. And no positions are more important at a hedge fund than its manager and head trader (who often are the same person).
Against that backdrop, Advanced Trading is proud to present a special report on "Traders to Watch" that profiles six of the most promising managers of recently launched funds (each fund launched within the past three years) with active trading-focused strategies, such as global macro and commodities. Each of our traders has proven his ability to generate strong returns and/or enjoys an impressive pedigree. Our exclusive interviews with these traders focused on their backgrounds, trading styles and future plans.
The diversity of our featured managers reflects the breadth of the hedge fund industry itself. Academics, alums of larger asset managers and even ex-mining company execs are among those highlighted in the following pages. The common threads? Trading talent, strategic vision and promising futures.
So keep an eye on these six traders. Along with us, we're sure you'll look forward to watching their growth.