Sun, Dec 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Various levels of transparency create two-tier hedge fund industry

Thursday, November 29, 2012

Benedicte Gravrand, Opalesque Geneva:

Fund managers are responding to an increasing demand for transparency from investors. However, there remains information asymmetry in the asset management world, which is challenge when it comes to identifying good managers. A Swiss consultant proposes a system whereby managers offer a symmetric fee schedule, and suggests this would be a win-win situation for both investors and asset managers in the long run.

Dr. Benita von Lindeiner, senior consultant at c-alm AG (for "comprehensive asset liability management") in St. Gallen, Switzerland, talked about the value of hedge fund transparency during Terrapinn’s Hedge Funds World conference in Zurich earlier this month.

C-alm tackled the question of asset management cost in a study on the Swiss second pillar (state pension fund system) last year, after the Swiss government had ordered an increase in cost transparency from the pension system, following a general crisis of confidence. The main findings of that study were that there was indeed a lack of cost transparency in the Swiss second pillar and asset management costs were high (between 2005 and 2009).

Does transparency actually mean anything for investors?

"We found some evidence in the study that there was a negative correlation between asset management costs and the returns," she notes.......................

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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und