Sat, May 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Textron CIO forecasts great merger between private equity and hedge fund managers (2)

Wednesday, April 23, 2014

amb
Charles Van Vleet
Benedicte Gravrand, Opalesque Geneva:

Charles Van Vleet, Textron’s private pension fund CIO, gives his perspectives on why benchmarking against the HFRI is a mistake in a rising S&P environment in a recent Opalesque TV interview. He also forecasts a great merger between private equity and hedge fund managers, explains why the latter may be better at managing structured debt and what hedge funds can do to facilitate investments by allocators.

The wrong way to use hedge funds His predecessor took on a 3% allocation in hedge funds and benchmarked it against the HFRI, he says, but he thinks it is the wrong way to use hedge funds. "My observation of hedge funds is that they are increasingly, particularly in the rising S&P environment we’ve had in the last two or three years, taking on – just like the HFRI in general – more and more equity beta. There are a lot of less expensive ways that I can get equity beta," he comments.

Mr. Van Vleet agrees that the HFRI is a great index, and a "slow rabbit" in which one can pick some select funds. His objective however is not to create a slow rabbit benchmark internally but to "carve out something that truly looks different to rate beta, equity beta, curve currency."

He wants to find hedge funds without the beta characteristics, and benchmark them to LIBOR +200. If he can make a basket of ......................

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. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  2. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  3. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  4. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  5. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the