Matthew, has it ever been considered to allow developer collaboration in order to provide a “super” strategy? My thoughts are a situation where 2 or 3 developers with good track records could come together to blend their approaches into one. Obviously the blending of complementary strategies would work best. I’m envisioning that each developer would be permitted to enter trades in the same strategy and then equally share in sub fees. For the sub, it would present a one-stop-shop option as well as a possible overall fee savings. I know subs can accomplish this on their own, but there may be some good synergistic combinations that are being missed.
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Thanks. Helpful. Help me out - does Scout driven by the sub selecting strategies or can developers on their own collaborate?
I think that developers can’t collaborate.
That team from C2 blended strategies.
Scout-alpha was sort of like a hedge fund, fund of funds. Running a fund of funds is difficult. They tend to under-perform.
Yes. But it was closest one could mix different strategies here, without need to monitor them all the time.
It may depend on who is picking the blend - the sub or the developer. I saw many fund-of-fund managers during my pension fund days. You’re right David. They do tend to under-perform. I’m wondering about developers doing the selection rather than the sub. My hunch is that two smart developers could tell pretty quickly whether their ideas create value. Don’t forget - “under-perform” is usually associated with return, not risk. I’m just throwing it out there. I encourage my subs to seek other strategies, even those like mine. It makes me feel better when I may be out of the market and the other guy is in.
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