By Beverly Chandler, Opalesque London:
Speaking at the Opalesque Netherlands Roundtable, sponsored by Eurex and Taussig Capital, Mark Burbach, Chief Investment Officer with the Blue Sky Group announced that, at the time of speaking, they had no investments in hedge funds.
"The reason for that is that
trustees of our clients donít see the need to invest in hedge funds. So it would be very nice to hear
from Niels and Michiel who have more than a decade of investment experience with hedge funds
their rationale for hedge funds in a pension fund portfolio context and how to best explain and
communicate these investments to the Dutch (pension) community."
Burbach confirmed that his firm is sensitive to Asset Liability Management (ALM), so his concern was how to model certain
scenarios into an ALM study and see the benefits and perhaps also the pitfalls of adding
hedge funds to a portfolio.
Burbach said: "Over the past years we have put some of our efforts into tactical positioning, for instance. Traditionally a portfolio of a Dutch pension fund consists assets of equities, bonds, some real estate
and certain risk hedges. Invested amounts stem from ALM studies translated into benchmarks. Any
deviation is mostly applied through position away from benchm......................
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