His track record at Citco is impressive. He built up Citico’s fund administration arm from 90 staff to 700 during his 16 years with the company. During this time he has built up strong relationships with leading law firms, hedge fund investors and technology providers.
A number of trade publications have reported that hedge funds typically take between six months to a year to become operational, a process that costs around £500,000. A number of these hedge funds fail due to their inability to gain sufficient funding. Stock believes Tennyson could cut the start-up time to three months, through its use of widely respected lawyers such as Martin Cornish and MW Cornish & Co, and reduce set-up costs to £150,000. Tennyson will also provide office space with full front- to back-office connections and support, plus consulting advice to hedge fund start-ups, should they opt for such services.
Tennyson will also offer a capital sourcing service and a 25% capacity option for capital raising from pledge partners. Typically most incubators require a 50% share.
Stocks, the majority partner and chief executive of Tennyson, told RiskNews that the firm plans to help set up six hedge funds this year.
Tennyson’s office outsourcing facilities are based at 25 St James’ Square in the West End of London. Its other two partners are Mike Wellings, who has 17 years of institutional sales experience, and Simon Harman, who most recently headed OTC derivatives, listed derivatives and cash equities at Fimat International Banque.