This new company, which has its head office in Guernsey, will take a multi-manager approach and aims to deliver cash-plus returns with low charges and high alpha while not falling foul of what it describes as industry ‘bad habits’.
Led by managing partners Manuel Carrelet and Sixten Eriksson, Generation Asset Management will focus on growth strategies and upcoming-and-therefore-growth regions with a particular focus on emerging markets. Eriksson promises “to deliver results” by being “in partnership with our clients” adding that they will offer “full transparency to clients and full accountability”.
He is critical of existing asset managers who have been “too self-interested and delivering too little to clients” with fees that are too high and results too inconsistent.
Eriksson added: “We see a definite disconnect between asset managers and their clients. Benchmarks are too often meaningless for clients, index hugging is far too prevalent and transparency is lacking. No-one should expect a professional service for free, but there is a difference between paying for a professional service and not receiving value for money.”
Generation AM is a joint venture between Generation Group, a Geneva-based merchant banking firm, and Arrow Hedge Partners, Canada’s largest fund of hedge fund.
At the same time, Arrow Hedge Partners is to as rebrand as Arrow and this move is its first foray into the UK market.
