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Participants discuss what happened to funds of hedge funds in Geneva during the financial crisis

Thursday, December 20, 2012

By Beverly Chandler, Opalesque London:

Participants in the Opalesque 2012 Geneva Roundtable, sponsored by Eurex, IDS and Taussig Capital, reflected on what has happened to funds of hedge funds in Geneva since the impact of the financial crisis.

Juan Martini, Senior Vice President, Institutional Investor Relations, Eurex, said: "Before the 2008 crisis, Swiss institutions usually went through hedge fund of funds to perform alternative investments which encompassed all outsourced non-traditional investments. After the crisis, more single hedge funds with flagship funds emerged here around the lake of Geneva, reflecting the fact that there was a shift from fund of hedge funds to single hedge funds".

"Swiss private banks' interest for hedge funds has certainly gone down since the 2008 crisis" agreed Charles-Henry Monchau, Head of Portfolio Management, EFG Asset Management. "With one out of five financial institutions in Geneva having some exposure to Madoff, it is no surprise to see some reluctance by private clients to get exposure again into hedge funds." Other problems for investors, particularly private clients, included being hit by fund of funds gating, lengthening their redemption peri......................

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