Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Banks’ retreat from traditional activities boosts hedge funds profits

Wednesday, June 26, 2013

amb
Robert Graham-Smith
From Komfie Manalo, Opalesque Asia:

Banks retreating from their traditional activities, particularly in Europe, is boosting hedge fund returns, agreed hedge fund managers who attended the latest Opalesque 2013 Australia Roundtable sponsored by Eurex and Australian Fund Monitors.

Robert Graham-Smith, portfolio manager at Perpetual Investments said that the retreat of banks from their usual portfolios has created opportunities for the broader alternative fund industry and particularly private markets over the last six to 12 months.

"We are seeing the opportunity to achieve up to low double digit returns through managers lending money to corporates," Graham-Smith said and added, "Although these are less liquid opportunities, earning a strong contractual return while focusing on strong companies and remaining high up in the capital structure we believe is a very attractive proposition versus more liquid bond markets."

He added that most of these opportunities are being driven by regulatory changes such as Basel III where traditional lenders are not providing finance to strong middle market corporates in some cases. Monik Kotech of Insync Fun......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1