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New firm offers hedge fund commission deal

A former Fundsdirect director has set up an introduction company which will negotiate commission for advisers selling hedge funds.

Insero Capital is negoti- ating introducer arrange-ments with several hedge fund firms, securing initial and trail commission for advisers along with a cut of any performance fee.

Founding director Rikos Leong-Son, who was sales and marketing director at Fundsdirect, says his company will be remunerated in the same way. The cash could be reb- ated to clients by fee-based advisers.

Leong-Son says most hedge fund companies do not pay commission and says his new operation will be able to offer access to closed funds.

Insero expects to have tied up introducer arrangements with between five and seven hedge fund managers by the end of this year.

Leong-Son is initially concentrating on long/short equ-ity strategies as he believes that these are among the most easily understood by advisers and investora but he hopes to add funds of hedge fund providers and even driven strategies’ houses later.

Leong-Son says: “We are acting as a capital introducer helping IFAs gain commiss- ion and deliver quality abs- olute-return funds to their clients.”

Syndaxi director Robert Reid says: “The test will be how good his due diligence is because hedge funds are a bit like with-profits – it is very difficult to work out what is going on.”

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