Sat, Apr 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: A Very Crowded Trade

Friday, January 27, 2012

This article was authored by Richard Harris, fund manager at Port Shelter Investment Management, based in Hong Kong. He compares the investment management industry to what it was like 26 years ago.

I remember a former Managing Director asking me to write a message to Head Office on a blank sheet of paper leaving space for others on the page so that we could send a full handwritten sheet back to Europe overnight. This was ‘generation one’ of the fax and each page cost a fortune to send. After 26 years, and a recent change of role, it is time to bring a little perspective to this Very Crowded funds management business.

Technology has revolutionised the funds management business in the last 26 years, changing it from a regional industry, where even then I was able to run money from Asia investing into Europe, into a global business capable indeed of bringing down the financial system.

My own creative jump on my competitors around 1988 was when I invested in an early fax machine to get the European closing news sent to me at 3.30 am so that I could speak to my Australian clients a four hours later. This was good for business but had a key drawback in that the ring would wake the family up – solved by cutting the wire to the offending bell.

Back then, managers benchmarked against a stock, bond or other index and the best beat the rest of the pack; now a young manager can get lucky for two or three years, raise a lot of money and then blow it al......................

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n