"Riptide Advisors, Errickson's new multimanager firm that's set to start trading on January 1, was created to address the industry's biggest challenge: a shortage of talented, experienced portfolio managers. The new manager's focus, Errickson said, is to be "basically a seeding vehicle" that will let unproven but promising talent - think an analyst at a big firm like Millennium who has never managed a book on their own - run small portfolios of up to $20 million with the goal to add capital and responsibilities over time by graduating to the firm's larger funds."
"While firms focused on seeding new launches have existed for decades, Errickson's focus on training young investing talent to learn how to trade in a multistrategy construct is unique. It's another example of the ripple effects from the dominance of the biggest players, namely Millennium, Citadel, Point72, and Balyasny, that have ballooned in size and swallowed up talent. At Riptide, young PMs will need to prove their ability to run a portfolio and make money within a tight risk system; the firm is using Arcana's risk management platform, designed by former Citadel PM Rich Falk-Wallace."
Riptide Advisors will begin trading on January 1 as a multimanager, multistrategy firm designed to address a shortage of experienced portfolio managers. The firm will hire unproven but promising analysts and let them run small portfolios up to $20 million with the prospect of earning more capital and responsibilities over time. The model functions as a seeding vehicle and a farm-league pathway that can graduate successful PMs into larger internal funds or connect them with external allocators to launch independent firms. Riptide uses a tight risk framework and Arcana's risk management platform to monitor performance and risk.
Read at Business Insider
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