Tue, Jul 28, 2015
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. Opalesque Exclusive: Michael E. Lewitt: Greece, Puerto Rico, China stock market problems are symptoms of global underlying disease[more]

    Benedicte Gravrand, Opalesque Geneva: Michael E. Lewitt, manager of the Third Friday Total Return Fund, L.P., author and market commentator, says in a Q2 letter

  2. Investing - Hedge funds, seeing opportunity, invest in struggling hotels in Puerto Rico[more]

    From NYTimes.com: Puerto Rico’s tourism industry has fallen victim to the island’s struggling economy, hit by one misfortune after another. In March, the San Juan Beach Hotel filed for bankruptcy. This week, the Condado Plaza Hilton was forced to close its casino. But nearly two thousand miles away,

  3. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  4. Opalesque Exclusive: London quant shop launches new improved strategy[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Simon Wajcenberg, CEO of K1T Capital Ltd, a systematic quant based hedge fund asset manager based in London

  5. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

 

banner