Key Takeaways
- • Edmond de Rothschild Capital Holdings won "best overall group" at the Hedge Funds Review European Fund of Hedge Funds Awards 2015, with CEO Rick Sopher also receiving a lifetime achievement award.
- • LCH Investments, the firm's flagship fund of hedge funds managing approximately $1 billion in assets, was launched in 1969 and claims to be "the definitive first fund of hedge funds," with an investment committee that has had only two chairmen over 46 years.
- • The investment committee comprises seven professional investors with a combined 166 years of hedge fund industry experience who conduct in-person manager visits and detailed due diligence, contrasting with more passive peer approaches.
- • Under Sopher's leadership since 1993, the FoHF has achieved zero operational risk losses and successfully avoided major hedge fund collapses, including early detection of issues at Weavering Capital before its 2009 failure.
- • Sopher's hands-on due diligence methodology, developed from his prior background as a partner at BDO Stoy Hayward, emphasizes intensive manager vetting and active investment committee engagement rather than passive approval processes.
Summary
Edmond de Rothschild Capital Holdings secured recognition as the best overall group at the 2015 Hedge Funds Review European Fund of Hedge Funds Awards, with Rick Sopher, the firm's chief executive and chair of its LCH Investments subsidiary, receiving the award for lifetime achievement. The recognition underscores the firm's operational excellence and institutional longevity within the competitive European hedge fund industry.
LCH Investments, which manages approximately $1 billion in assets, represents a foundational player in the fund-of-funds space, having been established in 1969. Sopher emphasizes the firm's historical position, stating that LCH holds "the definitive first fund of hedge funds" distinction. This historical pedigree is coupled with institutional stability; the investment committee that selects underlying managers has operated under only two chairmen across its 46-year existence.
The firm's competitive advantage centers on its rigorous manager selection process, which Sopher attributes to the depth of expertise embedded in the investment committee. The seven committee members collectively represent 166 years of hedge fund industry experience and conduct direct, in-person visits to prospective managers—a practice Sopher contrasts sharply with rival fund-of-funds operations where investment committees function more passively, reviewing limited materials without substantive engagement. This active oversight model reflects Sopher's foundational background in due diligence; prior to joining Edmond de Rothschild in 1993, he was a partner at BDO Stoy Hayward specializing in corporate finance investigations.
The firm's risk management record reinforces its market positioning. Under Sopher's stewardship, LCH has maintained a zero-loss record on operational risks and successfully navigated away from major hedge fund collapses that have impacted less diligent competitors. Notably, Sopher references an early assessment of Weavering Capital, which subsequently collapsed in 2009; the fund's founder, Magnus Peterson, was convicted of fraud in January 2015. Such cases underscore the tangible value of the firm's intensive manager vetting approach in protecting institutional capital.
LCH Investments, which manages approximately $1 billion in assets, represents a foundational player in the fund-of-funds space, having been established in 1969. Sopher emphasizes the firm's historical position, stating that LCH holds "the definitive first fund of hedge funds" distinction. This historical pedigree is coupled with institutional stability; the investment committee that selects underlying managers has operated under only two chairmen across its 46-year existence.
The firm's competitive advantage centers on its rigorous manager selection process, which Sopher attributes to the depth of expertise embedded in the investment committee. The seven committee members collectively represent 166 years of hedge fund industry experience and conduct direct, in-person visits to prospective managers—a practice Sopher contrasts sharply with rival fund-of-funds operations where investment committees function more passively, reviewing limited materials without substantive engagement. This active oversight model reflects Sopher's foundational background in due diligence; prior to joining Edmond de Rothschild in 1993, he was a partner at BDO Stoy Hayward specializing in corporate finance investigations.
The firm's risk management record reinforces its market positioning. Under Sopher's stewardship, LCH has maintained a zero-loss record on operational risks and successfully navigated away from major hedge fund collapses that have impacted less diligent competitors. Notably, Sopher references an early assessment of Weavering Capital, which subsequently collapsed in 2009; the fund's founder, Magnus Peterson, was convicted of fraud in January 2015. Such cases underscore the tangible value of the firm's intensive manager vetting approach in protecting institutional capital.
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