Thu, Mar 5, 2015
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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi

  5. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He