Bergstrom: New Allocators Cannot Replicate Legacy Platform Fund Conviction Today
Craig Bergstrom · Hedge Fund Master Class – Craig Bergstrom, Adam Blitz, and Dan Fagan (Capital Allocators, EP.318) · May 29, 2023 · at 42:18
Craig Bergstrom (CIO of Corbin Capital Partners) discusses the difficulty for non-sovereign wealth allocators in conducting due diligence on mega multi-manager platform hedge funds today compared to 20 years ago.
0:00 / 0:09exact quote · 9.6s
720p mp4 · rendered on demand · StarZero watermark
“I think if we were to approach that manager today, we wouldn't be able to develop the level of understanding and conviction that I think we have now.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Craig Bergstrom
Bergstrom: Multiple Well-Regarded Multi-Strategy Platform Funds Have Gone to Zero
“In my career, a bunch of extremely well-regarded multi-strategy managers that look like platforms roughly went to zero.”
Bergstrom: Open-ended credit hedge funds are in secular decline
“The open-ended credit hedge fund businesses we believe in, in secular decline, not going away this month or this year. But shrinking significantly in favor of closed-end structures, a big long-term part of that is hurdle rates, as you mentioned.”
Bergstrom: Strategy asset allocation is a hard way to add value in hedge funds
“Asset allocation being something we think about episodically, but we think a hard way to add value in hedge fund portfolios.”
Bergstrom: Corbin trades CLOs and CBOs internally facing Wall Street
“There are markets that we trade internally. We trade CLOs and CBOs facing the street, trying to use our manager selection insights and leveraging our relationship and transaction flow.”
Bergstrom: There are too many hedge funds with no reason to exist
“We believe that there are way too many hedge funds. I don't think that hard to identify a lot of firms that have no reason to exist.”
Bergstrom: Credit markets will not see a golden age of distress
“I think that we are not going to see a golden age of distress. Oh, these are great businesses that happen to have not the right cap structure. Those days are gone. The markets are too competitive. They're too multifaceted. There's too much dry powder. And in p…”