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Alternative Market Briefing

Struggling hedge fund investors seek experts for ‘rescue mandates’

Thursday, July 09, 2009

From Kirsten Bischoff, Opalesque New York:

The April 2009 Casey Quirk/BofNY Mellon Study predicted that hedge fund assets would grow to $2.6tln by 2013 and that fund of hedge funds would be the funnels for 60% of the assets returning to the industry. With hedge funds finishing the first half of the year with approximate gains of +12% (according to the Hennessee Hedge Fund Index), fund of funds that survived 2008 are showing signs of positioning themselves for these expected eventual reallocations.

The Casey Quirk Study cites manager sourcing as one of the two ways fund of hedge funds growth will be spurred in the future. Readers of the Opalesque New York Roundtable recently learned about the “rescue mandates” fund of hedge funds shops such as Credit Suisse Asset Management are starting to receive from institutional investors.

Institutions with “rescue mandates” “We currently do a lot of what we call rescue mandates”, Credit Suisse Asset Management Managing Director Ed Robertiello said during the Roundtable. These mandates are typical of family offices or other investors into hedge funds that built portfolios mainly around long biased, long/short equity, or equity event driven strategies that were clobbered in 2008. “We are helping......................

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