Sat, Jun 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Edhec Risk Institute report finds the 'Absolute Return’ term is misleading

Monday, April 30, 2012

Beverly Chandler, Opalesque London: The latest edition of the Edhec Risk Institute’s Investment Management Newsletter features a report that speculates that mainstream managers and hedge funds are continuing in a head to head battle for territory, and one that is based on a misleading piece of nomenclature.

In a piece entitled, 'Mainstream managers and hedge funds: battle joined?, Dr Arjuna Sittampalam, Research Associate with EDHEC-Risk Institute and Editor, Investment Management Review says: "In recent years, hedge funds have attacked the business of traditional asset managers, targeting their customers, both the institutions and the retail public. But the signs are that the mainstream is successfully fighting back".

Sittampalam finds that hedge funds going into these new territories have been driven by two important developments: the UCITS III directive, which has allowed a version of hedge funds to be sold to retail investors under the much-prized UCITS label and, a large element of the hedge funds’ customer base, high-net-worth individuals, were put off in 2008 by the illiquidity of the sector at a time of crisis.

Sittampalam writes: "The hedge funds’ invasion of mainstream territory is being defended successfully by the traditional houses, which are also hitting back in hedge fund territory. According to Helena Morrissey, Chief Exec......................

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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider