Strategically Speaking: Aspect Capital
For many hedge fund managers, changing institutional demand has entailed greater transparency as well a pressure on fees as investors have shifted to low-cost beta, enhanced factor-based strategies or illiquid direct investments.
The response of Aspect Capital, founded in 1997 by CEO Anthony Todd and research director Martin Lueck, to this landscape has involved an internal ‘diversification strategy’ away from its flagship fund, the systematic trend-following Aspect Diversified strategy, which has a track record dating to 1998.
Faced with lower overall income in the past five years, Aspect’s diversification strategy, has involved generating alternative income streams from new programmes and reducing the cost base. This has been achieved by recruiting staff, seeding new strategies and restructuring key roles.