Beverly Chandler, Opalesque London:
Damien Hatfield of
Triple A Partners has published his latest Australian hedge fund newsletter and finds, finally, a reason to be cheery about the Australian hedge fund industry, and funds of funds in particular.
"2014 could be a standout year for
Australian hedge funds" he writes, reporting that since the global financial crisis, Australian hedge fund managers have 'done it tough’.
However, there is now something of a recovery in process, Hatfield finds, with some managers achieving good
performance and improving AUM. The Bank of Bermuda Asia Hedge Aust
L/S Equity Index is up 22% in the last 12 months.
Hatfield writes: "Institutional
investors are adding alternatives to the asset
allocation and Asset Consultants are building
Hedge Fund teams."
As third party marketers, Hatfield has recently seen new potential
investors and old investors beefing up their
intended and existing allocations to hedge funds.
However, he warns that there still exists a tendency to compare Equity Market performance against the lower
volatility performance of a portfolio of
hedge funds. "Fund managers can never win. They are doing the
right thing by clients,
by adding exposures to assets
with a low correlation to Equity markets but this can
return on a
portfolio that has a
standard allocation to Equities. Non market
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