Deimos Asset Hedge Fund Secures Investment from Ontario Teachers’ Pension Plan
Deimos Asset Management, a new hedge fund led by a group that includes a former Co-CEO of RBC Capital Markets, has attracted investment from Ontario Teachers’ Pension Plan, one of Canada’s biggest pension funds.
Ontario
Teachers’ Pension Plan, which oversees 140.8 billion Canadian dollars
in assets ($112.3 billion), will invest an undisclosed amount in
Deimos’s multistrategy hedge fund as an anchor investor, Deimos said
Tuesday.
The
investment is significant given the increasing difficulty hedge funds
face raising new money amid a stricter regulatory environment.
“The
requirements for passing operational due diligence keep getting
stricter and stricter,” Mark Standish, former co-chief executive of RBC
Capital Markets, said in a telephone interview. “That translates into
more costs because of the more infrastructure needed for small and
midsized managers,” he said.
At
the same time, large institutional investors are more demanding of
managers to produce outperformance against prevailing market conditions,
he added.
Deimos,
based in Purchase, N.Y., was created in February after a management
buyout group that included Mr. Standish acquired Guggenheim Partners’
multistrategy hedge fund. His partners included Loren Katzovitz and
Patrick Hughes, previously managing partners of the Guggenheim Global
Trading alternative investment management business.
Source: Wall Street Journal
