Formed in 2006, Balter Capital Management, LLC ("BCM") is a registered investment advisor focusing purely on hedge fund research and investing. We believe our dedicated focus on hedge fund investing provides us with the highest level of insight and differentiation by applying our rigorous approach to sourcing, analyzing, monitoring and interacting with hedge funds. We utilize both established funds as well as continuously sourcing “non-brand name” managers that have not yet been identified by the broader investment community. BCM invests in hedge funds globally with a focus on equity and credit strategies.
BCM adheres to the following investment and management philosophies: (1) Preference to invest in “right-sized” funds; (2) Operational integrity is the most critical element for any investment, and (3) BCM clients should pay either for Oversight or for Performance, but not both.
Right Sized Funds
BCM believes the assets under management of any given fund and strategy is highly relevant to the selection process. While BCM does not maintain strict parameters on fund size for inclusion in our investment vehicles and programs, we favor managers that manage the appropriate amount of money that allows them to access the markets they focus on with the correct liquidity profile. For more on BCM’s philosophy on this subject, please ask us for a copy of our AIMA published white paper “Hedge Fund Industry Fragmentation and the Case for Smaller Managers.”
Operational Integrity
Operational integrity will supersede performance for BCM. We place a great emphasis on understanding the operations and organizational structure for all of our invested hedge funds prior to committing capital. While we do not utilize a “check the box” approach to operational due diligence, we do believe that for each given funds strategy and asset size, there are operational best practices that must be followed to mitigate the risk of a business failure for a hedge fund investment.
Pay for Oversight or Pay for Performance
BCM does not believe in the fund of funds and advisory industry standard of charging investors both a management fee and an incentive fee. All of BCM’s funds are structured with share classes that offer our investors the choice of either paying for oversight through a management fee only class or for performance in an incentive fee only class. For further insights into BCM’s philosophy, please ask us for a copy of our AIMA published White Paper “Fund of Fund Fees: Change is in the Wind.”
Balter Capital Management’s client base all share the desire for differentiated thinking as it pertains to hedge fund investing. This has resulted in a wide range of investors that include individuals and institutions, and everything in-between.