An MFO launches alternatives due-diligence service

FWR Staff

21 April 2009

Fund advisor draws on trading skill for private and institutional clients. Harrison, N.Y.-based multifamily office Augustus Advisors and its sister broker-dealer Augustus Capital have launched a service that provides research and due diligence on alternative managers for that allocate funds to or provide advisc on hedge funds and CTAs.

Hands on

A CTA or commodity trading advisors is an individual or firm that is registered with the Commodity Futures Trading Commission to receive compensation for providing advice on options, futures and trading of managed futures accounts.

Augustus Advisors is a general partner of the Augustus MJK Fund, a multi-strategy, multi-asset class, market-neutral hedge fund that employs thematic positions and short-term trading.

"Too few asset 'allocators' or analysts amongst consultants and fund-of-fund professionals have ever traded professionally or been trained by prolific sell-side firms," says Augustus Capital's CEO Mark Abeshouse. "Too few have ever managed institutional sums of money or engaged in quantitative risk management for well-known 'buy-side' asset-management firms."

The firms behind the new due-diligence service figure it's likely to get most of its business from select high-net-worth individuals, family offices, foundations and other non-profits, funds of funds, pension consultancies and retirement-plan sponsors. -FWR

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