Thu, Aug 28, 2014
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius