Whale Rock Capital Management LLC is an investment management firm with more than $15 billion in assets under management (AUM). It currently manages a total of eight pooled investment vehicles, six of which are hedge funds. The firm currently employs 14 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.
Whale Rock Capital Management Background
Whale Rock Capital Management LLC is a limited liability company formed in March 2006. Its primary purpose is to sponsor and manage pooled investment vehicles. The founder, principal owner and managing member of Whale Rock is Alexander Sacerdote, who is also its current CEO.
The firm serves as investment manager to its funds according to separate investment management agreements between each fund and Whale Rock. The firm provides investment advice solely to these funds and does not tailor portfolio management services to the individual needs of investors in the funds. Investors in the funds include high-net-worth individuals, trusts, foundations, endowments, charitable organizations, pension plans, corporations, funds of funds and other domestic and international institutional investors. Minimum account investments vary by fund. For example, the Flagship Funds and the Hybrid Funds require a minimum investment of $1 million. The Long Opportunities Funds investment minimum is $5 million. Each investor in the funds must be an "accredited investor" as defined by the Securities Act of 1933 and they must also be a "qualified purchaser" as defined by the Investment Company Act of 1940.
Whale Rock Capital Management Investment Philosophy
The investment objective of the Whale Rock funds is to provide consistently excellent and risk-adjusted returns. Whale Rock uses a fundamental, research driven approach and a disciplined investment process. The firm believes that its experience and insight are an integral part of the advantage it provides to these funds.
Whale Rock's overall strategy seeks to identify technological, social and economic trends that are advantageous to the investment process. The firm analyzes relevant information to understand the long-term valuation implications before the market even does. As a result, each fund's investment strategy is typically expected to be longer-term in nature.
Of course, all current and potential clients should be aware that no investment strategy can guarantee against risk of loss.
Largest Hedge Funds Managed by Whale Rock Capital Management
Whale Rock Flagship Master Fund, LP
- AUM: $9,795,283,555
- Minimum: $1 million
- Beneficial Owners: 540
Whale Rock Long Opportunities Master Fund, LP
- AUM: $252,400,632
- Minimum: $5 million
- Beneficial Owners: 33
Whale Rock Long Opportunities Fund II LP
- AUM: $200,000,000
- Minimum: $5 million
- Beneficial Owners: 1
Whale Rock Flagship (AI) Fund LP
- AUM: $97,621,493
- Minimum: $1 million
- Beneficial Owners: 34
Fees at Whale Rock Capital Management
Fees at Whale Rock include fees based on AUM, or assets under management, plus performance-based fees. These may be waived or reduced with respect to particular investors. A full description of all fees, expenses and compensation will be included in detail in each set of offering materials or agreements.
The management fee at Whale Rock is fixed and ranges from 1% to 1.75% per year. The performance allocation usually ranges from 15% to 20% of a fund's realized or unrealized net profit or capital appreciation (i.e. increase in value).
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, Whale Rock Capital Management 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 Whale Rock Capital Management
If you are an accredited investor and wish to become a client of Whale Rock Capital Management, you can visit the firm's website or call (617) 502-9900.
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