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Alternative Market Briefing

Lombard Odier CIO recommends health, cosmetics, food, water, forestry, infrastructure

Wednesday, November 26, 2008

From the Opalesque team: According to Swiss newspaper Le Temps, Aziz Nahas, CIO at Lombard Odier Darier Hentsch & Cie (LODH) said in a forum organised by the bank in Geneva last week that the hedge fund industry may lose up to a third of its assets in 2008.

Nahas used to be manager at Dillon Read Capital Management, which internal funds were liquidated in May 2007. He had distanced himself by realising very good performance. After that, he launched, together with Hubert Keller, the hedge fund 1798 Global Partners, named after the year LODH was founded.

The fund is run by a team in New York and started marketing itself in April 2008. Nahas hired four of his former colleagues from Dillon Read the following month.

Nahas forecasts a generally lower appetite for complex financial products. But two kinds of hedge funds will survive the crisis: lightweight structures and big institutions, which will become more diversified – such as 1798 Global Partners, which has the backing of LODH.

“It’s the best time to invest,” he said.

He believes that demographic changes, especially the ageing market, offer great opportunities. “By 2050, more than 2 billion people will be over 60,” he noted. LODH has identified innovative companies in the health and medical technology sectors. Another interesting sector is women, a market which represents more than 80% of the consumers’ decisions. Cosmetics, pharma and food companies which target them best will be the most successfu......................

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