Ep. 74 The Long-Short | Understanding multi-manager mania

Published: 10 January 2024

The Long-Short is a podcast by the Alternative Investment Management Association, focusing on the very latest insights on the alternative investment industry.

Each episode will examine topical areas of interest from across the alternative investment universe with news, views and analysis delivered by AIMA’s global team, as well as a host of industry experts.

The multi-manager model is being billed as the fastest growing sector in the hedge fund industry with media and investors alike enamoured by the major players in the space.

Freddie Parker, Managing Director and Co-Head of Prime Insights and Analytics at Goldman Sachs, joins us to explain what is behind the rise of the multi-manager model and signposts some key trends that must be navigated to sustain the growth amid rising interest rates and an intense talent war.

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Episode breakdown by question:

  • What is the multi-manager model? (1:19)
  • What is the difference between the terms multi-strategy and multi-manager? (2:21)
  • Can you put into numbers the rise of the multi-manager model? (3:04)
  • What are the advantages and disadvantages of allocating to a multi-manager over a traditional hedge fund? (4:27)
  • How does the multi-manager model generate performance? (7:20)
  • How adaptable is the multi-manager model to rapidly changing market conditions? (9:04)
  • What evidence is there that multi-managers generate alpha better than single managers? (10:51)
  • How competitive is the war for talent in the multi-manager space? (12:45)
  • How does the fee model work for multi-managers compared to the rest of the industry? (15:53)
  • Is the higher interest rate environment posing a problem for the multi-manager model? (20:49)
  • How do the leverage levels among multi-managers compare to the rest of the industry? (23:54)
  • What is your outlook for the multi-manager model in the short to medium term? (27:39)


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