First-Time Funds :: Untapped Opportunity
Experienced and sophisticated investors are increasingly focused on "emerging managers," which we define as managers who are still largely unknown to the investor universe. Investing in new managers is not without its risks—for many reasons, some investors continue to avoid it—but data strongly suggests that funds managed by new or emerging managers have outperformed tenured or "brand name" managers focused on the same sectors.
Still, the bar for these managers is extremely high, and it should be. Simply having a good investment idea doesn’t mean you can successfully manage money. Yet for investors who are able to choose the best emerging managers, the rewards can be meaningful.
In this issue of the Private Markets Monitor, we highlight some of the ways new managers can successfully attract capital. We also present insights into several sectors—mobile in China, security and privacy, and real estate—that provide attractive opportunities today.
We hope you enjoy it.