Thu, Feb 11, 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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s