Tue, Jul 26, 2016
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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe