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An MFO launches alternatives due-diligence service

Reported by Wealthbriefing
Apr 21, 2009· 2 min read
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Key Takeaways
  • • Augustus Advisors and sister broker-dealer Augustus Capital (Harrison, N.Y.) have launched a dedicated due-diligence research service for alternative investment managers, targeting hedge funds and commodity trading advisors (CTAs).
  • • The service addresses a market gap: Augustus Capital CEO Mark Abeshouse notes that few asset allocators, consultants, and fund-of-funds professionals possess trading experience, sell-side training, or quantitative risk-management expertise from institutional buy-side firms.
  • • Augustus Advisors operates the Augustus MJK Fund, a multi-strategy, market-neutral hedge fund employing thematic positions and short-term trading strategies, positioning the firm with direct operational experience in alternatives management.
  • • Primary target markets include high-net-worth individuals, family offices, foundations, non-profits, funds of funds, pension consultancies, and retirement-plan sponsors seeking institutional-grade alternatives vetting.
Summary
Augustus Advisors and Augustus Capital have introduced a research and due-diligence service focused on alternative investment managers, leveraging the firms' direct experience in hedge fund management and trading. Based in Harrison, N.Y., the multifamily office and its sister broker-dealer aim to fill what they perceive as a critical skill gap in the alternatives industry.

According to CEO Mark Abeshouse, the service responds to a fundamental problem within the allocator and consultant community: insufficient professional trading experience and formalized training from major sell-side institutions. "Too few asset allocators or analysts amongst consultants and fund-of-fund professionals have ever traded professionally or been trained by prolific sell-side firms," Abeshouse stated. The firm further notes that limited representation among allocators have managed institutional capital or implemented quantitative risk-management protocols comparable to established buy-side asset managers.

Augustus Advisors operates as a general partner of the Augustus MJK Fund, a multi-strategy, market-neutral hedge fund that employs thematic positioning and short-term trading tactics. This operational involvement in alternative asset management directly informs the due-diligence framework offered to external clients.

The service is structured to serve select segments including high-net-worth individuals, family offices, foundations and non-profits, funds of funds, pension consultancies, and retirement-plan sponsors. By positioning itself as an advisor with embedded trading expertise and institutional portfolio management experience, Augustus targets institutions and allocators seeking enhanced evaluation capabilities for hedge fund and CTA investments.

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Sources

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Wealthbriefing An MFO launches alternatives due-diligence service