Vale Dick Elden, hedge funds-of-funds pioneer

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Richard Elden, the founder of hedge funds of funds manager Grosvenor Capital in the US, regarded as the first firm of its type, has died, aged 84. Rothschild brought Grosvenor to Australia in 2000 to be the core manager for the Rothschild Global Return Fund that became the BT Global Return Fund.

According to ‘Pensions & Investments’, Grosvenor is ranked fourth in the world in assets managed in hedge funds of funds, with US$25.9 billion under management as at June last year. It also manages other strategies including private equity, real estate and infrastructure.

Richard Keary, now based in London, said last week: “I came to know Dick very well and stayed in touch with him regularly over the years.  I spoke with him a month or so ago and he was full throttle on a new project.  His energy put me to shame The transition of Grosvenor from cottage industry to institutional titan was testament to his vision. The way he did it was testament to his decency. He was a wonderful man and the investment industry is poorer for his passing. ” Keary put together and ran BT’s hedge funds business unit.

Thomas Elden, Richard’s son, who was also a hedge fund manager, was quoted by ‘Pensions & Investments’ saying: “My father spawned an entire industry. It started as a cottage industry and has become enormous,..

“When my dad started, most clients were high-net-worth individuals. There was no precedent for institutional investors to outsource investment manager selection with a second layer of fees. In the 1970s, a major endowment wouldn’t have considered outsourcing its investments,” he said.

– G.B.

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