Inside Schonfeld's pitch for its $2.2 billion fundamental equity fund - Business Insider

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Schonfeld is raising money for its $2.2 billion fundamental equity fund. Here are the highlights of its 24-page pitch to investors laying out fees, performance, and personnel.

Become an InsiderSchonfeld Strategic Advisors, the $5.8 billion hedge-fund manager founded by billionaire Steven Schonfeld, is raising money for its Fundamental Equity Fund.The 24-page presentation outlines the firm's focus and the fund's selling points, including its qualifications of the 52 portfolio managers that contribute to the $2.2 billion fund and the fees it charges. The $5.8 billion hedge-fund manager is in the process of raising more capital for its $2.

In an interview with Business Insider in 2019, Tolkin, the firm's CIO, said that the goal was to become theThe Fundamental Equity fund, which was launched in 2016, has $2.2 billion of capital spread across 52 portfolio managers, and their teams. Forty-one of these teams are fundamental equity managers, while 11 are tactical trading teams; the Strategic Partners fund is the only fund that includes the quant portfolio managers' contributions.

The presentation tries to sell prospective investors on the firm's ability to recruit and retain top portfolio managers. Schonfeld describes the terms it typically offers PMs — exclusivity for two to three years, on-demand liquidity, 15 to 20% of the profits earned for the fund — as well as the process to get hired.

The fund's performance has been solid, according to the presentation: It has returned 6.7% through the end of September this year. The average hedge fund through the same time period was up roughly 0.6%, according to Hedge Fund Research. Previously, the fund has been positive every year except for 2016.

 

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