TOMORR OW’ S TITANS 2023


Introduction Fifty Rising Stars


HAMLIN LOVELL T 36


he Hedge Fund Journal has been publishing the Tomorrow’s Titans report on rising star hedge fund managers since 2010. It has been an annual report since 2020, and since 2021 has run a mix of short and extended profiles.


Most of the managers featured in this year’s report have launched a strategy – and their own firm – during the past five years. All the names are new, save for macro and credit manager Alberto Gallo, who has featured before when at Algebris, and who has now launched his own firm Andromeda with Aditya Aney.


Managers featured range in age from their 20s to their 60s, and it is not a list of first-time launches; some managers featured are onto their second, third or fourth launch.


Strategy mix Thirty-three of the fifty managers featured are running discretionary strategies; thirteen are running systematic strategies; the two single strategy managers are explicitly hybrid, and two multi-strategy/multi-manager platforms are also effectively hybrid.


The largest group of managers run discretionary equity long/short strategies with a geographic or sector focus. Orlog and Jungle Gene are globally focused; High Ground is Europe-oriented; Wellfield trades energy, and Gersemi trades shipping. Some have both a geographic and sector bent, such as Millingtonia’s digital dominated strategy in India. There are five discretionary managers investing in credit.


There are three CTA strategies, three event driven and three equity market neutral. Two trade discretionary macro, one systematic macro, one is a volatility arbitrageur and Cellyant trades a rather unique strategy in securities financing arbitrage.


There are four pure cryptocurrency managers trading a variety of long/short and/or market


“Managers


featured range in age from their 20s to their 60s, and it is not a list of first-time launches; some are onto their


second, third or fourth launch.”


neutral strategies using proprietary technology, and one multi-strategy platform, The Quarry, which allocates to crypto strategies and other relative value strategies.


There are three commodity traders: one systematic strategy trading a range of commodities, one fundamental systematic trader focused on energy, and a third trading carbon.


Many managers are using AI and machine learning for part of their process and there are several dedicated AI and machine learning strategies, such as those run by Castle Ridge Asset Management, Kvasir Technologies and Ancova Capital Management.


Some managers are activist: Metrica in Singapore has recently been so in South Korea, and Nippon Active Value Fund is dedicated to activism in Japan. In the US, Brian Finn of Findell Capital Management has written an open letter, and Jonathan Lefebvre of Aleena Capital engages with companies on matters including ESG.


ESG Many managers incorporate ESG into their investment process, the operation of their management company, and the selection of their service providers.


Some managers marketing in Europe are also making disclosures under the EU Sustainable Finance Disclosure Regime: Osmosis equity market neutral does so under SFDR Article 8, and Carbon Cap’s The World Carbon Fund makes disclosures under SFDR Article 9.


Locations Twenty two managers are located in the Americas: nineteen in the US, two in Canada and one, Fourth Sail, in Brazil. Within the US, outside the tristate area of New York, New Jersey and Connecticut, there are managers in Boston, Chicago and Wyoming, as well as in the growing hedge fund hubs of Texas and Florida.


Nineteen of the managers are based in Europe. There are ten in the UK of which eight are in London, one in Cornwall and one in Cambridge. There are two in Germany, two in Luxembourg, one in Switzerland, one in Spain, and one in each of Denmark, Sweden and Norway.


Nine managers are based in Asia, including Shanghai, Hong Kong, Singapore and Tokyo as well as one in India. Unusually, there are no managers based in Australasia in this year’s report, though we do feature expat Australians: Orlog’s John Qiu and Carl Radford and Mike Rothlin, who are launching a macro strategy in Hong Kong. For the first time, we feature a manager based in Abu Dhabi, which is building a growing hedge funds presence.


Assets and maturity Managers running more than USD 1 billion include Arini, Fourth Sail and Mane Global; those running more than USD 500 million include DCM Systematic and Pantechnicon. But this is not a ranking of the largest launches of recent years, for a couple of reasons. Some managers do not want media coverage and so do not feature at all in this report. Plus, we have set out to provide a


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