Hedge fund managers tend to be reluctant to offer separately managed accounts, preferring commingled funds that can be jointly managed. And institutional investors have been willing to go along, believing that managed accounts not only are expensive (read: high administrative costs) but can be a drag on performance. Better one smart person running multiple funds.

Not so fast, says Christopher Vogt, who oversees the hedge fund portfolio for Northbrook, ­Illinois–based, $133 billion Allstate Investments. Vogt, 41, believes that managed accounts not only are good practice but also allow investors to add value; he has the data to prove it. “Our performance stands out,” Vogt says.

Last month, Vogt and Investcorp, a $12 billion alternative investment firm that runs a managed account platform for Allstate’s hedge fund portfolio, published research showing the benefits of managed accounts. It revealed that investors that control their own capital are insulated from widespread gating and overexposure to crowded trades — benefits commingled hedge fund investors would have appreciated in recent years.