HFM: Former Invesco PMs ready $100m equity HF launch
Jeffrey Everett and Bert van der Walt to launch Tectonic Investors in Q1
By Michael Rodwell, 14 DEC 2021
Former Invesco pros Jeffrey Everett and Bert van der Walt are prepping the launch of a global equity hedge fund.
The pair have been working on Tectonic Investors since earlier this year and are set to launch in January 2022.
Tectonic will pursue a thematic long-short global equity strategy that invests within megatrends including the energy transition, the circular economy, future mobility, and innovative infrastructure. It is understood the firm will also trade carbon emission certificates.
The firm will offer investors an incentive fee arrangement based on Fund Alignment Rights, that has been structured in conjunction with FARCapital. Incentive fees will be re-invested in the strategy for a minimum of three years, effectively giving LP’s a rolling two-year clawback.
“A lot of people just want to start a fund and take the money out when they earn it… for us this is something we really wanted, to be closely aligned to our investors,” Van der Walt told With Intelligence.
“There’s a lot going on in the investment [and] corporate world[s] about how you should align yourself,” he continued. “For us, this is governance… [if] you want to put your money where your mouth is, this is the way to do it.”
With Intelligence understands Tectonic could launch with between $50-100m. The firm will use Goldman Sachs as prime broker, Withum as auditor, Centaur Fund Services as administrator, and Refinitiv’s AlphaDesk OMS.
The firm will have a master-feeder structure domiciled in the US and Cayman Islands with Seward and Kissel providing onshore legal counsel and Maples as offshore.
Everett is the former CIO of Invesco’s Global Core Equity Group, an all-weather unit that oversees roughly $10bn in assets. He previously co-founded EverKey Global Management, a global equity investment boutique that was acquired by Wells Fargo in 2011.
Prior to that, he spent almost 17-years with Templeton Global Advisors where he was CIO of the Templeton Equity Group, managing approximately $35bn. He is currently a member of the board of trustees of the John Templeton Foundation.
Van der Walt most recently worked alongside Everett at Invesco as a portfolio manager from January 2017 until November 2020. Prior to that, he managed money at Mirae Asset Global Investments, Driehaus Capital Management, Baring Asset Management, and Alexander Forbes.
The pair are in the process of onboarding a CFO/COO who has been selected and is due to join the firm in the first quarter.
Global equity-focused hedge funds have had strong performance lately. Since dropping 4.6% in 2018, the With Intelligence Global Equity Index gained 12.8% in 2019, 20.3% in 2020, and is up 9.5% through November 2021.