Schonfeld Strategic Advisors is an investment management firm with more than $18 billion in assets under management (AUM). It currently manages a total of 26 pooled investment vehicles, 24 of which are hedge funds. The firm currently employs 162 advisors.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore only accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
Schonfeld Strategic Advisors Background
Schonfeld Strategic Advisors LLC is a Delaware limited liability company that was formed in September of 2015. The firm is headquartered in New York City. It is owned 100% by three trusts for the benefit of Stephen Schonfeld and his family. The firm's management team is a three-person executive committee consisting of founder Steven Schonfeld, CIO Ryan Tolkin and President Andrew Fishman.
Schonfeld founded the firm and its predecessors, and is responsible for overall investment strategy, business and product development as well as company operations across the Schonfeld businesses. He is a recognized leader in securities trading and has been managing hedge fund investments since 1998. Ryan Tolkin is responsible for leading the firm's investment and capital allocation team as well as oversight of business development. He has previously worked at Goldman Sachs. Andrew Fishman manages the non-investment activities of the business and continues to be actively engaged in business development and risk management, as well as membership of the advisory and capital allocation committees. He has prior financial experience as well as experience practicing law and focusing on highly structured corporate finance transactions.
The firm mostly provides discretionary advisory services to private investment funds, trading vehicles and specific advisor affiliates. There are limited cases in which the firm may also provide non-discretionary advisory services to an affiliate. Clients include but are not limited to the following: private investment funds, trading vehicles and family office-related entities. With regard to private investment funds, investment advice is provided to the fund and not individually to each of the investors in the fund. Investment minimums and investor eligibility requirements for private funds are detailed in the fund's offering documents; furthermore, fund managers may waive or reduce the amount of any minimum initial amounts at their sole discretion, subject to applicable regulations.
Schonfeld Strategic Advisors Investment Philosophy
The broad goal of the firm's investment strategy is to achieve capital appreciation, or increase in value, of client assets while adjusting for various kinds of risk. The fund uses primary investment strategies named as follows: Fundamental Equity, Global Quantitative, Market Neutral and Tactical Trading. Additionally, portfolio managers may also directly or indirectly invest in equity and debt securities of unaffiliated private companies.
The firm invests in both U.S. and non-U.S. financial instruments for its clients; these include but are not limited to stocks, bonds, options, warrants, futures, commodities, partnership, LLC and other equity interests, debt securities and other securities and derivatives. Portfolio managers also invest in a variety of financial instruments.
The firm's approach is "bottom-up," involving quantitative assessment of historical risk/return characteristics of the portfolio. Quantitative analysis typically involves using mathematical models to review data, draw conclusions and make investment recommendations. Additionally, the firm believes that a qualitative and subjective evaluation of a portfolio manager's business operations is important for the process, and as a result performs due diligence on each perspective portfolio manager. This can include monitoring to ensure a high standard of performance, portfolio composition and diversification.
Largest Hedge Funds Managed by Schonfeld Strategic Advisors
Whitney Capital Series Fund LLC
- AUM: $10,356,444,373
- Minimum: $3 million
- Beneficial Owners: 2
Schonfeld Strategic 460 Fund LLC
- AUM: $3,022,952,159
- Minimum: $3 million
- Beneficial Owners: 3
Schonfeld Fundamental Equity Fund LLC
- AUM: $2,801,546,303
- Minimum: $25 million
- Beneficial Owners: 24
Schonfeld Strategic Partners Fund LLC
- AUM: $1,721,987,842
- Minimum: $3 million
- Beneficial Owners: 157
Schonfeld Globar Master Fund LP
- AUM: $1,240,988,156
- Minimum: $3 million
- Beneficial Owners: 3
Fees at Schonfeld Strategic Advisors
Schonfeld Strategic Advisors does not have an overarching standardized management fee or performance fee schedule. The firm generally charges a management fee that ranges from 1.5% to 2% depending on the asset class. Furthermore, it charges a performance-based fee that ranges from 12.5% to 20% depending on the asset class. Certain fees and expenses may vary depending on the specific situation.
Beyond this, other additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential and existing clients read the offering documents carefully and reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors. Such investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
Within the past 10 years, Schonfeld Strategic Advisors has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of Schonfeld Strategic Advisors
If you are an accredited investor and wish to become a client of Schonfeld Strategic Advisors, you can visit the firm's website or call (212) 909-1623.
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