How Multi-Manager Platforms Are Redefining Hedge Fund Strategy

Inside the Future of Multi-Manager Innovation

The latest episode of FinTech Focus TV, hosted by Oli Knight and filmed live at Quant Strats 2025, captures one of the clearest, most candid conversations happening in the hedge fund and quantitative finance ecosystem today. Featuring Mathias Piardon, CEO of 1L Capital, this discussion goes deep into the realities of building a competitive multi-manager structure, the evolving preferences of today’s portfolio managers, and the changing expectations of global allocators in 2025. For an industry where competition for elite PMs, quants, and alpha-generating talent has intensified dramatically, this conversation brings together insights that both financial institutions and FinTech recruitment specialists will find invaluable.

Mathias arrives at the event fresh from a presentation on portfolio construction, and the interview begins with a wide-lens view of the challenges that global funds are facing. In contrast to many industry narratives that suggest 2025 represents a new or unprecedented environment, Mathias is clear that the world facing funds today is not entirely novel. Instead, it is one shaped by a rebalancing of capital flows, a renewed allocator interest in hedge funds, and a shift away from the dominance of private equity activity that absorbed so much attention in recent years. As large wealth management companies and institutional allocators begin redirecting capital into hedge fund strategies, questions emerge about how investors should structure their exposures, and how managers should evolve to stay competitive. 

FinTech Hiring and Portfolio Management Careers in a Shifting Allocator Landscape

Mathias outlines that allocators today face a complex decision matrix. Investors must consider whether to allocate directly to individual funds, access strategies through managed account platforms, or turn toward multi-manager structures with specialist oversight. The conversation highlights that while interest in hedge funds is rising, the pathways through which allocators want to access alpha are becoming more sophisticated.

Oli asks how 1L Capital fits into this landscape, especially given the increasing competition between multi-manager platforms. Mathias is quick to clarify that 1L Capital is not a traditional fund-of-funds. Instead, the firm operates a multi-manager structure, selecting managers with high-quality alpha strategies and giving them managed accounts under a unified fund umbrella. This distinction matters because it removes unnecessary layers of fees, increases transparency, and allows the firm to control risk more efficiently. For candidates exploring quant finance jobs or multi-manager PM opportunities, the transparency highlighted by Mathias reflects a growing industry trend: top talent increasingly seeks environments where risk oversight is clear and aligned with performance expectations.

According to Mathias, the true advantage of their model lies in their ability to deliver complete transparency to their LPs. By running managed accounts, they know precisely what risks traders are taking, can quickly intervene when needed, and maintain careful oversight to ensure no drift occurs. In an environment where diversification, mandate discipline, and risk symmetry are core expectations, 1L Capital’s approach stands out as disciplined, responsive, and attractive to investors seeking clarity. This also has implications for talent acquisition in hedge funds, as PMs increasingly want to join firms that empower them rather than restrict them.

FinTech Talent Demand and How Multi-Manager Structures Are Competing for the Best PMs

The conversation moves into one of the most pressing topics in the multi-manager world: how smaller or newer platforms can compete with large established names like Millennium. Oli invites Mathias to explain the competitive positioning of 1L Capital in relation to the biggest players in the space. Mathias explains that, while they share a similar structural concept, their approach is intentionally differentiated. They offer higher payouts, more flexibility, and risk constraints designed specifically for their business rather than a rigid framework spread across dozens of factors.

For FinTech recruitment businesses like Harrington Starr, this reflects a larger trend across the hedge fund and quant community: elite PMs are increasingly seeking environments that provide more autonomy and meaningful upside. Many multi-manager giants are heavily standardised in their mandate structures, payout models, and risk rules. Yet the most entrepreneurial PMs, especially those prepared to generate independent alpha, often prefer a model like 1L Capital where partnership outweighs hierarchy.

Mathias emphasises that they never require exclusivity from managers. Instead, they support them in building businesses independently and even help introduce them to other investors. For candidates considering portfolio management careers, this is a fundamentally different value proposition. It creates a sense of long-term partnership and reduces the fear that a platform might abruptly “pull the plug,” a concern often whispered about within the industry’s most demanding multi-manager environments.

The firm currently works with 25 managers and adds around one new manager every month. This steady, deliberate growth demonstrates both demand from PMs and the increasing capital interest from large allocators. For the FinTech and quant recruitment space, this signals that the market for alpha-focused PMs remains tight and competitive, with strong demand for those who can deliver low-correlation, high-discipline performance.

Quant Finance Recruitment and What 1L Capital Looks For in PM Talent

When Oli shifts the conversation to hiring and talent evaluation, Mathias offers one of the episode’s most valuable insights for those working in FinTech recruitment, particularly within quant and hedge fund hiring markets. They work with a wide spectrum of portfolio managers: individuals spinning out from established platforms, academics with innovative models and strong research, and teams coming from billion-dollar hedge funds seeking to run new strategies.

Rather than focusing purely on vanity performance metrics, Mathias stresses that what they value most are strategies with strong alpha orientation. They do not demand extraordinarily high Sharpe ratios, which he argues can sometimes misrepresent risk and lead to unhelpful benchmarks. Instead, they focus on controlled volatility, controlled drawdowns, disciplined diversification, and effective risk controls such as active stop-losses or de-grossing during periods of heightened realised volatility.

In practical terms, this means they seek PMs with clarity of process, independence of thought, and a disciplined approach to risk rather than those chasing high but unstable returns. For the recruitment community, this is a meaningful insight. It reinforces that hedge fund hiring decisions, even at high-performing multi-manager platforms, often prioritise robustness over extreme performance. This nuance is essential for recruiters who must balance what candidates believe matters with what platforms actually value.

Mathias further explains that their internal portfolio construction model depends on the orthogonality of returns across managers. Their goal is to minimise beta, maximise alpha, and establish a stable risk-adjusted composite that generates exceptional Sharpe ratios at the fund level. This approach not only diversifies exposures but also allows them to give managers realistic targets that align with risk parameters.

FinTech Jobs, PM Autonomy, and the Importance of Long-Term Partnership

One of the strongest themes throughout the interview is the concept of partnership. Mathias repeats that PMs do not want to be beholden to a system that can abruptly change direction or enforce constraints without transparency. They want autonomy, respect for their craft, and stability in their capital base. 1L Capital offers agreements where both parties co-invest, aligning interests and creating structures that encourage long-term thinking.

The conversation explores how PMs respond to their prop-style payout model. Mathias acknowledges that talent naturally gravitates toward this structure because it provides meaningful upside and encourages genuine commitment. They require PMs to co-invest, placing their own capital at risk, but this reinforces the alignment between manager performance and the broader objectives of the fund.

This detail is especially relevant to talent moving between hedge funds or seeking quantitative finance jobs. Increasingly, PMs prefer environments where they can grow beyond a single mandate, explore new strategies, and build relationships with private banks or wealth managers. Mathias explains that 1L Capital actively supports managers who want to carve out and grow independently. They help them access Swiss private banking networks, wealth managers, and other investor groups. This level of business development support is rare in the industry and represents a major differentiator for PMs.

FinTech Industry Evolution and Insights from Quant Strats 2025

Toward the end of the episode, Oli asks Mathias for his impressions of Quant Strats London. Mathias notes that the event exceeded expectations, particularly in the depth of discussions and the insight offered by service providers. He highlights that the hedge fund industry is evolving into a new form, shaped by deeper understanding, more robust conversations, and a clearer sense of how the environment is shifting. For recruitment businesses, understanding these shifts is essential. The nuances of risk, structure, and manager development all influence the types of candidates who succeed in this market and those who will thrive in the next phase of the industry.

As the conversation wraps, it becomes clear that 1L Capital represents a modern approach to the multi-manager model, one built on transparency, partnership, and strategic flexibility. For PMs, quants, and aspiring investment professionals, the episode provides valuable insight into how hedge fund careers are evolving and what top platforms truly expect from their managers. And for FinTech recruitment firms like Harrington Starr, these insights are crucial in shaping conversations with both candidates and clients across London, New York, and global financial hubs.