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Fired Fund Manager's Bold New Investment Strategy
26 Mar
Summary
- Justin Leverenz was fired from Invesco after a career in emerging markets.
- He is launching a private investment vehicle with a 5-10 year capital lock-up.
- The new fund will focus on long-term value, detached from benchmark performance.
Justin Leverenz, a prominent former stock picker in emerging markets, was dismissed from Invesco in June 2025. This event, which he described as "losing his religion," has prompted him to create a new investment vehicle. This private fund, aimed at friends and family, will operate with a capital lock-up period of five to ten years, preventing redemptions during market downturns.
Leverenz plans to structure the fund with minimal management fees, aligning incentives with long-term profits rather than annual bonuses. The vehicle will eschew traditional benchmark comparisons, focusing instead on building a concentrated portfolio of 20 to 40 international stocks. He has already secured over $1 billion in soft commitments for this unconventional approach.
The industry expert has secured more than $1 billion in soft commitments for his new, concentrated portfolio of 20 to 40 international stocks. This long lock-up period, rare in typical hedge funds, is more common for friends-and-family arrangements, according to experts. It allows managers to genuinely adopt a long-term perspective, free from immediate redemption pressures.
Leverenz's career, marked by significant outperformance on his flagship Invesco Developing Markets Fund, also saw substantial asset declines due to market downturns and geopolitical events. His departure highlights the increasing pressures on active managers in an era dominated by passive investing and the challenges of navigating volatile emerging markets.
