Thu, Jun 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

How fund of hedge funds houses Cube Capital, Signet have innovated since '08

Thursday, June 27, 2013

amb
Scott Gibb
Benedicte Gravrand, Opalesque Geneva:

The fund of fund space has seen significant changes since the financial crisis, and the less value-added methods have been disappearing. A couple of fund of hedge fund managers describe how their companies have been adapting to the post-2008 environment during the recent Opalesque UK Roundtable.

Scott Gibb, Partner and Portfolio Manager at Cube Capital, a $1.3bn alternative asset management business, said: "The so-called 'concierge' model whereby the fund of funds (FoF) simply provided access to hedge funds.... has been dis-intermediated by investment consultants to a large degree – they do research on large, brand name managers and make recommendations to large allocators as to which one to invest with, charging a small fee for the advice. This is rational as the 'concierge' fund of funds typically underperformed given their high and undeserved fees."

There are models that are still alive and that are thriving, he continues. The very large FoF, which offer lower fees, high diversity, low volatility products and managed accounts continue to attract assets. So do those which offer specialised products such as macro, fixed income, or emerging market products. They are different from concierge funds in that add value in such things as heightened transparency, extensive due diligence......................

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. Comment: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  4. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  5. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is