John Lidington Will Co-Manage Man Numeric’s Liquid Private Equity Strategy
Man Numeric’s strategy emulates a private equity portfolio’s returns but at a lower cost and better liquidity.
Man Numeric have appointed John Lidington as co-portfolio manager of its liquid private equity strategy alongside existing portfolio manager Charles Liu.
Liquid private equity may sound like a contradiction in terms. However, Man Numeric invests in small, listed companies that mimic the profile of a typical private equity portfolio.
Therefore, the strategy seeks to generate returns (and carry risk) similar to that of a buyout fund. However, the investor gains from vastly better liquidity and much lower costs.
Liquid alternatives are increasingly popular
“Market interest in liquid private equity alternatives is growing,” said Shanta Puchtler, CEO of Man Numeric. “We believe this type of strategy can benefit institutions of all sizes as a cash management tool within their broader private equity allocations.”
John Lidington said it was exciting to observe the strategy since its inception. He looked forward to providing clients with “similar return profiles and risk exposures as traditional buyout funds but without the long lock-up periods.”
Man’s Investment Thesis
Shortly after the launch of the strategy in May 2018, John Lidington and Gregory Bond wrote a blog titled “Private Equity Goes Public.”
They said the three structural limitations of traditional private equity are higher fees, illiquidity, and limited transparency.
However, liquid private equity features can resolve these limitations. These are:
- Lower management fees and no performance fees
- No lock-up periods
- Usually a rules-based investment process and a daily valuation of the portfolio
The strategy should ideally “avoid large-cap stocks and marry 1) top-down industry tilts that match PE’s industry exposures with 2) bottom-up proxies for buyout managers’ methods of identifying potentially undervalued companies and unlocking that value through growing revenues, improving operations, and various other means,” they wrote.
Latest Alternative Investment News
Volatile equity markets and declining fixed income yields have turned the traditional 60:40 portfolio allocation between stocks and bonds on its head. According to one study, an investor would today…
Layer1, the bitcoin miner backed by the likes of top-flight VC Peter Thiel and early-stage investor Shasta Ventures, based its operations in west Texas to take advantage of cheap power….
The Covid-19 has boosted the fortunes of online grocery delivery start-up Missfresh. Locked-in families have stepped up their demand for groceries and fresh foods to be delivered at home amidst…
Global analytics firm GoodData announced it had received an investment from Visa Ventures, the corporate venture investment division of payments giant Visa (NYSE: V). GoodData also said the two companies…