The Allocation Gap
Queen Street believes that many investors face the Allocation Gap. Typically large institutions have preferred larger allocations across fewer managers rather than multiple, smaller accounts across many managers. For example, an institution may not want to be the major client of a small manager, nor have a substantial amount invested with a new manager. Nor may they want a stable of too many (small) managers with all the attendant cost and supervisory-related demands.
For smaller institutional investors, it may also be difficult to get a diversified exposure to Emerging Managers because of the investor’s relatively small asset base and the additional costs of identifying and monitoring such Emerging Managers. The impact of these constraints is to create an Allocation Gap where institutional investors miss out on potentially attractive investment opportunities with Emerging Managers.
Queen Street has been purpose-built with the aim of delivering a potential solution to the Allocation Gap for institutional investors. Queen Street staff have a combined 15 years of research experience in the Boutique sector and, as a majority employee owned boutique firm are fully aligned with the goals of both client and underlying boutique investments.
Queen Street is designed to be attractive to large and small institutional investors because it offers the opportunity to allocate investment capital across a diverse range of underlying Boutiques, which have the potential to generate high returns and the opportunity to gain exposure to business performance of small boutique businesses.
Queen Street Partners aims to capitalise on the opportunity presented by the Allocation Gap, offering institutional investors the potential to capture any excess alpha generated by Emerging Managers.