RWC Partners is on the hunt for prominent fund managers to join the business, as it builds out its fund offerings.
Dan Mannix, chief executive of RWC Partners, says the group is looking at managers in areas the business currently has gaps, such as small cap and fixed income.
“The thing that matters is finding really interesting people that are a good cultural fit,” he says. “We don’t want to bring in a lot of people that are disruptive.”
“We don’t need to be massive, we do need to be scalable and do want to develop the business. We don’t want lots of £20m and £30m funds that might not make it,” he says.
Last year RWC hired 15 staff from Miami-based hedge fund Everest Capital for its new emerging, frontier and Asia equity business. It subsequently launched the RWC Global Emerging Markets Equity Ucits fund for the team.
Mannix says the hire of the large, well-know and well-regarded team has proven to other fund managers that RWC is able to successfully integrate fund managers looking to move.
He also believes that the firm could benefits from increasing regulation in the industry that makes it harder for fund managers to set up on their own. It is likely to drive more fund managers to join other asset managers when they look to leave their existing setup, says Mannix.
“It’s increasingly hard for new businesses to establish themselves, which is not great for innovation in the industry. Fund manages who wanted to set up on their own but just want to run money are likely to join a firm,” he says.
However, Mannix has ruled out a move into the smart beta space, which has seen an influx of assets in recent years.
Passives put the responsibility on individuals to time the market, which is inherently hard to do, he says.
Meanwhile smart beta funds, that run money to factor exposures, are charging more for their research and constant evaluation of the market, he says. “But that is essentially a black box, so you have to decide if you trust those making the moves.”