The Joy of Discovery | GP Seeding, Hedge Funds & Manager Research with Scott Schweighauser (Borealis Strategic Capital Partners)

20 snips

Feb 4, 2026

Scott Schweighauser, Managing Partner at Borealis Strategic Capital Partners with decades in trading, fund-of-funds, and GP seeding, talks manager selection and seeding structures. He covers why now is a compelling time to back emerging managers. Conversations touch on manager research, alignment-focused seed terms, the emerging manager premium, and how rowing informs leadership, teamwork, and grit.

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ANECDOTE

Building A Trading Desk Young

Scott recounts building a derivatives trading function at Continental Bank in his mid-20s from scratch.
He used programming and math skills to create pricing models and a global trading capability during crises.

INSIGHT

Institutionalization Changed Hedge Funds

Scott highlights institutionalization as the major change since the mid-90s in hedge funds.
He notes institutional inflows after 2000 made funds ubiquitous and transformed investor mix.

ADVICE

Do Reference Checks First

Start reference checks early and build a mosaic of the manager from multiple contacts.
Use deep network-sourced diligence instead of relying only on manager-provided referees.

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In this episode of Dakota Live!, host Robert Morier sits down with Scott Schweighauser, Managing Partner of Borealis Strategic Capital Partners, for a wide-ranging conversation on GP seeding, hedge fund history, and why now is such a compelling moment to back emerging managers.

Scott brings decades of experience across trading, fund-of-funds investing, and early-stage hedge fund seeding to unpack how the hedge fund industry has evolved—from the early, relationship-driven days through institutionalization, the GFC, and today’s renewed focus on differentiated alpha.

The discussion explores why emerging managers can outperform early in their lifecycle, how thoughtful seed structures create alignment, and what allocator-grade manager research and due diligence really look like in practice.

The conversation also weaves in Scott’s lifelong passion for rowing—using the sport as a powerful metaphor for teamwork, trust, grit, and leadership. From sunrise rows on the Charles to building durable investment partnerships, Scott shares why having fun in the work matters, and how joy, curiosity, and discipline coexist in great investing organizations.

Key topics covered:

• GP seeding and strategic capital for emerging hedge fund managers
• A brief history of hedge fund investing—and why the opportunity set is changing
• Why “why now” matters for seeding and early-stage manager selection
• Manager research, sourcing, and qualitative due diligence
• Alignment, structure, and avoiding adverse selection in seeding deals
• Early-stage performance dynamics and the “emerging manager premium”
• Rowing, leadership, trust, and building teams under pressure
• Why curiosity and enjoyment are underrated edges in long-term investing

Whether you’re an allocator, GP, institutional sales professional, student of the markets, or simply curious about how investment talent is identified and supported, this episode offers a thoughtful, experience-driven look at hedge funds, seeding, and the human side of manager selection.