Spartan’s process in making available new strategies to investors is typically as follows:
Seek out Strategies and Investment Teams
We seek out strategies that we believe will provide investors with superior risk-adjusted returns or meet a specialized need within a portfolio. These strategies tend to be capacity constrained, niche and/or non-conventional when compared with traditional asset classes such as equities and bonds. Our search efforts sometimes take considerable time as we are trying to find investment teams that have demonstrated an edge with respect to a given strategy.
Experience of Investment Teams
The investment teams that we meet typically have previously worked within an institutional framework and tend to fall under one of two categories: 1) those that have recently left another asset manager or institution or b) those that have already established themselves as independent portfolio managers.
Following the completion of successful due diligence by the operations and risk groups within Spartan that involves a number of quantitative and qualitative factors, the investment teams will either 1) join us internally as Spartan employees or 2) Spartan will retain these independent portfolio managers as sub-advisors.
Creation of Fund
A new fund is then created by Spartan within our operational and compliance framework and is offered to investors. Spartan’s investor base tends to consist of high net worth individuals, single- and multi-family offices who access Spartan’s funds directly or through their registered advisors.