Bivium Capital Partners – a San Franciscio-based fund of funds founded by president and CEO Les Hollis, President and three former colleagues at Goldman Sachs, which specialises in emerging fund managers – has launched an investment management boutique for public and private pension plans, corporations, family offices and wealthy individuals.
Bivium Capital says its sole ambition is to identify, hire and foster the growth of promising money managers that are underutilized, undiscovered or poised for success, and the firm creates managed accounts and fund of funds products for sophisticated investors to take advantage of them. Bivium says it believes emerging managers offer the greatest potential for above-benchmark returns, particularly in certain asset classes where the markets tend to be less efficient such as small cap equities, international equities, hedge funds and private equity.
“Over the past several years, we have seen an abundance of talent and investment success among emerging managers,” says Hollis. “Great money managers are typically overlooked when they are too small or too new, and Bivium Capital is designed to identify the success signals in emerging managers and access the strong risk-adjusted performance they provide in their developing years for the benefit of our clients.”
Bivium Capital hires managers that exhibit specific organizational characteristics that include: small, boutique-type style, limited institutional relationships, sound operations, predominantly employee-owned, strong risk-adjusted returns, and most importantly, a repeatable investment process.
Bivium employs regimented quantitative research followed by a three-step qualitative evaluation during its manager selection process. Portfolio construction aims to achieve smoother returns and better risk-adjusted performance than that provided by a single core manager. Monitoring requires daily pricing and valuations so Bivium can provide transparency to clients. Risk monitoring is performed daily. In addition, managers undergo a comprehensive analysis each month that reviews performance, portfolio characteristics and holdings and material changes at the firm.
“The principals of Bivium Capital have a unique perspective on identifying, selecting and monitoring emerging managers,” says Robert S. Sloan, founder and managing partner of S3 Asset Management and a Board member of Bivium Capital. “Their acumen, combined with the relationships they have cultivated with emerging managers creates a compelling investment opportunity for institutional and high net worth investors.”
Bivium Capital has formed a strategic partnership with S3 Asset Management, the hedge fund aggregation platform that provides mid-sized managers with access to a full range of services such as prime brokerage, administration and accounting, delivered with optimal financial efficiencies. Derivatives Portfolio Management (DPM), the alternative investment fund administration specialist, will provide Bivium with daily trade reconciliation reports and NAVs for all its managers, managed accounts and fund of funds.
Lester E. Hollis, president and chief executive officer, is responsible for coordinating the business activities of Bivium. Previously, Hollis founded Hollis Wealth Management, an investment advisory firm that offered family-office type services to high net worth individuals and families. He previously worked in the investment banking divisions of Epoch Partners and Goldman, Sachs & Co. advising clients on capital raising and M&A. He received his BA in Economics from Cornell University and his MBA from Columbia Business School.
Lawrence P. Bancroft is managing director and chief investment strategist. Bancroft is responsible for product development, portfolio construction and manager search and due diligence. Prior to joining Bivium, he was in the investment management division of Goldman, Sachs & Co. He was one of the first members of Goldman’s external manager selection team and was involved in all aspects of the development of that group. Bancroft received a BS from Cornell’s School of Industrial and Labor Relations and an MPA from Cornell University School of Public Affairs.
M. Nancy Hollis is a managing director. She is responsible for asset allocation, investment policy and manager due diligence. She was previously a member of Robertson Stephens’ Investment Consulting and Family Office Group where she was responsible for diligencing and hiring managers across all asset classes. Hollis also worked at Goldman, Sachs & Co. in the investment management division. She earned her BA in Economics from New York University and an MBA in Finance from Columbia Business School.
Richard M. Nichols is a managing director. Nichols is responsible for the overall direction of Bivium, with a particular focus on legal and operational affairs. He is an attorney with more than 20 years experience in sports, politics, finance, venture capital and technology. Notably, he served as vice president of corporate affairs and general counsel to the American Basketball League, senior associate attorney at Wilson Sonsini Goodrich & Rosati, and chief operating officer and general counsel to Pacific Capital Mortgage. Nichols received his AB from Dartmouth College, a Masters from Stanford University Graduate School of Education Administration and Policy Analysis Program, and a Juris Doctorate from University of California, Hastings College of Law. He is a member of the State Bar of California.
Bivium Capital was formed in 2002 and is headquartered in San Francisco.