Key Takeaways
- • Amundi Alternative Investments won the Hedge Funds Review European Fund of Hedge Funds Awards 2015 for best bespoke FoHF provider, recognizing its managed account platform (MAP) approach to customized fund selection.
- • Institutional investors are increasingly demanding exposure to mid-sized hedge fund managers—funds large enough to demonstrate track records but small enough to execute tactical positions quickly without moving markets, a trend Amundi is capitalizing on amid rising volatility.
- • Amundi's competitive advantage centers on an exceptionally strong operational due diligence team with veto power over fund selection, an unusual structure that differentiates it from traditional FoHFs where due diligence teams typically report to the chief investment officer rather than holding final approval authority.
- • Michael Hart, deputy chief executive of Amundi Alternative Investments, emphasizes that investors increasingly value manager agility: larger hedge funds face longer unwinding timelines during market dislocations, making smaller, more responsive managers attractive when housed within a rigorous operational framework.
- • The firm tailors its FoHF offerings by directly engaging clients on their specific concerns over 12-24 month horizons, combining bespoke portfolio construction with rigorous, ongoing stress testing of manager portfolios and positions.
Summary
Amundi Alternative Investments has secured recognition as the best bespoke fund of hedge funds provider at the Hedge Funds Review European Fund of Hedge Funds Awards 2015, reflecting a strategic positioning around customized managed account platforms that address a shifting institutional preference in alternative asset allocation.
The award reflects broader market dynamics. Institutional investors are moving away from traditional mega-cap hedge funds—which have become so large that their positions are difficult to unwind during volatility spikes—toward mid-sized managers that retain both credibility and tactical flexibility. According to Michael Hart, deputy chief executive of Amundi Alternative Investments, investors now view the largest funds as sufficiently transparent that "you may as well get long-only funds." The demand for medium-sized managers is accelerating as volatility begins creeping back into markets. Investors recognize that smaller managers can react more quickly to sell-offs and adjust positions without the market impact constraints that plague larger funds, yet they want the operational oversight and risk management that a bespoke FoHF platform provides.
Amundi's competitive edge rests primarily on its operational due diligence infrastructure. The firm maintains what Hart describes as "one of the best in the business" operational due diligence teams. Critically, this team holds veto power over fund selection—an unusual governance structure in the FoHF industry. Most fund of hedge funds firms organize due diligence teams as advisory bodies that report to the chief investment officer, who retains final decision-making authority. Amundi's model inverts this hierarchy, giving due diligence practitioners final approval authority. Hart notes that "our clients really like this" because it reinforces the platform's reputation for safety and rigorous gate-keeping.
The firm's due diligence approach is both comprehensive and ongoing, not merely a pre-investment gate. Stress testing of manager portfolios—both current positions and historical performance—is deliberately stringent. This framework allows Amundi to offer investors exposure to smaller, less-established managers without the operational risk typically associated with concentrated, less-monitored positions. Hart's earlier experience as a consultant convinced him this operational rigor was Amundi's defining differentiator, and the 2015 award validates that positioning as institutional capital increasingly flows toward customized, carefully curated alternative platforms.
The award reflects broader market dynamics. Institutional investors are moving away from traditional mega-cap hedge funds—which have become so large that their positions are difficult to unwind during volatility spikes—toward mid-sized managers that retain both credibility and tactical flexibility. According to Michael Hart, deputy chief executive of Amundi Alternative Investments, investors now view the largest funds as sufficiently transparent that "you may as well get long-only funds." The demand for medium-sized managers is accelerating as volatility begins creeping back into markets. Investors recognize that smaller managers can react more quickly to sell-offs and adjust positions without the market impact constraints that plague larger funds, yet they want the operational oversight and risk management that a bespoke FoHF platform provides.
Amundi's competitive edge rests primarily on its operational due diligence infrastructure. The firm maintains what Hart describes as "one of the best in the business" operational due diligence teams. Critically, this team holds veto power over fund selection—an unusual governance structure in the FoHF industry. Most fund of hedge funds firms organize due diligence teams as advisory bodies that report to the chief investment officer, who retains final decision-making authority. Amundi's model inverts this hierarchy, giving due diligence practitioners final approval authority. Hart notes that "our clients really like this" because it reinforces the platform's reputation for safety and rigorous gate-keeping.
The firm's due diligence approach is both comprehensive and ongoing, not merely a pre-investment gate. Stress testing of manager portfolios—both current positions and historical performance—is deliberately stringent. This framework allows Amundi to offer investors exposure to smaller, less-established managers without the operational risk typically associated with concentrated, less-monitored positions. Hart's earlier experience as a consultant convinced him this operational rigor was Amundi's defining differentiator, and the 2015 award validates that positioning as institutional capital increasingly flows toward customized, carefully curated alternative platforms.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.