Alternative Market Briefing

Canada’s hedge fund industry has 'tremendous room for growth’

Thursday, October 04, 2012

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Chris Dopp Komfie Manalo, Opalesque Asia:

Canada’s hedge fund industry has tremendous room for asset growth and this will continue to be a strength for Canadian funds going forward, said Chris Dopp, Senior Vice President at exchange group Eurex, one of the sponsors of the latest Opalesque Canada Roundtable.

The other sponsor was Kaufman Rossin Fund Services, an independent full-service provider of specialized administration services to the global financial community. The Roundtable took place in the offices of Deloitte in Toronto, Canada in September.

"One of the advantages of Canadian hedge fund managers is having relatively smaller assets under management and the nimbleness that provides. There has been extensive research produced that shows that the performance of smaller funds actually outpaces bigger funds on a consistent basis. As an aside, it is interesting that the bulge bracket funds continue to raise the majority of assets," Dopp said.

He added that the institutionalization of the investor base in the U.S has created a situation where large managers have grown rapidly. In doing so, they are losing the scalability of their strategies and are expanding outside of their core competency. And this can be challenging. However, funds in Canada are not even close to th......................

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