Allison DiClemente
Executive director, capital introductions
Supported by Marex, the latest Hedgeweek Ones to Watch report highlights 20 standout new ventures and explores the realities of raising capital and scaling a fund in today’s more selective market.
Navigating a more nuanced hedge fund landscape
The hedge fund industry reached $4.88 trillion in assets in 2024, yet the environment facing new launches today looks very different. Gone are the high-profile, multi-billion dollar debuts of the past. In their place is a more complex and fragmented ecosystem shaped by diversification, increased allocator scrutiny and growing operational demands.
Now in its third year, Hedgeweek’s Ones to Watch report identifies new funds poised to make their mark and examines how managers are navigating this evolving landscape.
Explore the full Ones to Watch list and allocator perspectives on the emerging manager landscape.
Hedgeweek and Marex will discuss the report’s findings and what they mean for fund managers and allocators in a webinar on 3 June 2025. Allison DiClemente will moderate the session, bringing allocator and manager views together in a practical and timely conversation.
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Allison DiClemente, Marex: what it takes to raise capital in today’s market
The report features expert commentary from Allison DiClemente, executive director, capital introductions at Marex, who shares insights on what investors are looking for and how managers can stand out.
How would you characterise the current landscape for emerging hedge fund managers?
We’re in a unique moment. The recent market volatility will likely persist for months, which changes the picture somewhat. Coming into the year, there was significant appetite for emerging managers, partly because enthusiasm for large multi-strategy platforms had faded due to concerns about over-capitalisation.
This led allocators to seek alpha from smaller, newer managers. However, the heightened volatility of recent weeks will likely temper some interest – not because sentiment towards emerging managers has shifted, but because institutional investors are contending with drawdowns in their broader portfolios and may be less inclined to take additional risks.
Our research indicates investors are seeking niche strategies from emerging managers. Does this align with what you’re hearing?
That’s one of the top trends we’re seeing. With the industry at approximately $4.5tn, we’re not seeing substantial new capital pools. Instead, we’re witnessing mature portfolios where allocations are more about tactical adjustments rather than deploying fresh capital. This environment naturally favours niche strategies that offer something distinctive.
In terms of strategy preference, we’re seeing more market-neutral and multi-strategy approaches alongside increased interest in commodities. What trends are you observing?
I would agree. We’re certainly observing both of these trends in the market. Given our expertise in commodities, we’ve seen a notable increase in interest from allocators. On the market-neutral front, demand has clearly picked up as a result of the recent surge in volatility.
Much of this is being driven by a desire for strategies with lower net market exposure, looking for unique alpha streams. While there’s growing appetite for market-neutral and low-beta strategies, there’s also sustained and meaningful interest in long-only allocations, leading to a bit of a barbell effect: ultimately, the focus is shifting toward paying for true alpha, rather than simply gaining market exposure.
What helps emerging managers overcome the persistent capital-raising challenge?
Several factors are crucial. First, have a clear, concise story explaining where you fit in an investor’s portfolio and articulating your alpha contribution and key differentiators. Second, demonstrate appropriate gravitas and institutional credibility. Third, present materials that efficiently communicate your strategy, terms, and differentiators.
Finally, explain any evolution from your previous approach convincingly – particularly if you’re shifting from a long-biased to a market-neutral strategy and vice versa. The ability to clearly answer “why can you hedge effectively when others have struggled?” is often decisive.
