Fri, Feb 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fund of hedge funds managers 'need to trust the driver'

Monday, November 21, 2011

amb
Alexandre Col
Benedicte Gravrand, Opalesque Geneva:

Hedge funds are back to their 2007 peak in terms of assets, at around $2tln – but it’s not the case for funds of hedge funds (FoHFs). Especially when it comes to European FoHFs, which used to use much more leverage than their U.S. counterparts.

The current crisis is similar to the ’08 credit crisis, said Alexandre Col at Terrapinn’s Hedge Funds World Zurich 2011 conference on Tuesday, and even if it is more about the public sector this time around, hedge funds could still lose money. Col is head of investment funds at Banque Privée Edmond de Rothschild S.A. , a Geneva-headquartered private bank.

However, one should look on the long term horizon. FoHFs have achieved what they were paid for, he said, that is, much higher returns than equities. Investors could have doubled their money between 2001 and 2011 in a diversified portfolio of hedge funds.

Among the current trends in the hedge funds industry, Col noted, we have the consultants, who "are now dominating the market." They are like FoHFs managers, he explained, but do only half of what FoHFs managers do. There is neither added value nor any negative value in using a consultant.

Another trend is found in investors asking for more transparency – including FoHFs managers. However, he noted, allocating to a h......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Very small CTA averages 6.90% per month since April’14 inception[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: There aren’t many one-man shops around in the hedge fund world but we talked to one. Andrew S. Peskin, who is ba

  2. Investing - Top U.S. hedge funds cut Apple stakes ahead of all-time high, John Paulson holds gold ETF in Q4 but cuts back on some miners, Hedge funds exited tumbling oil company shares late last year, Some top investors exit Herbalife, Soros added shares in fourth quarter, Moore Capital boosts U.S. financial holdings, reduces China bets[more]

    Top U.S. hedge funds cut Apple stakes ahead of all-time high From Reuters.com: Top U.S. hedge fund management firms, including David Einhorn's Greenlight Capital and Philippe Laffont's Coatue Management, reduced their stakes in Apple Inc during the fourth quarter, ahead of the iPhone mak

  3. Opalesque Exclusive: Skënderbeg launches four single-manager funds with Your Wealth AG[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Skënderbeg Funds AGmvK, an investment fund for qualified investors under Liechtenstein law (umbrella fund),

  4. Opalesque Roundtable: Many Swiss investors are questioning the value proposition of hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: There is a well-known transition among investors in hedge funds between high-net-worth individuals and institutional investors, Ian Hamilton, head of the IDS Group, said during the recent

  5. UCITS HFS Index starts year on positive note with 1.09% gains in January[more]

    Komfie Manalo, Opalesque Asia: The UCITS HFS Index started the year on a positive note gains of 1.09% in January after finishing 2014 with a modest performance of 1.62%. Index provider 2n20 said th