Wed, Feb 20, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds must use stable and validated technologies to continue attracting institutional investors

Thursday, January 08, 2015

Komfie Manalo, Opalesque Asia:

Hedge funds must use stable and validated technologies to continue attracting institutional investors in the light of the decision by the influential California Public Employees’ Retirement System of Calpers to pull out its entire $4bn hedge fund portfolio in September.

Paul Bebber, regional sales manager at Advent Software said that Calpers’ decision has a "profound significant" effect on the industry across the globe as a string of public pension funds are now reportedly re-examining their existing or planned hedge fund investments.

"We’re seeing similar issues in Europe," he said and added, "In September it emerged that Dutch pension fund PMT would close its €1bn hedge fund portfolio, blaming high investment fees. In the UK, the Railways Pension Scheme and BT Pension Scheme are said to be reassessing their hedge fund investments, while the chairman of the London Pension Fund Authority said hedge funds’ high fees are no longer justifiable."

Bebber said he was not surprised by the backlash. Investors have been grumbling about hedge funds’ traditional "2 and 20" fee model for years. Recent performance – returns of 3.47% through October, compared to 5.18% for the MSCI World Index, according to Eurekahedge – has added to the pressure, he said. For 2014, the Eurekahedge Hedge Fund Index was up 4.34% while the MSCI World closed the year up 5.50%.

Many institutional investors stil......................

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. New Launches: Royal London launches new Greetham fund, Direct lending specialist unveils multi-manager credit fund, PeakSpan Capital announces final close for Fund II on $265m, Mubadala's venture capital unit to launch $400m European fund, Lazard offers Scandinavian bond fund[more]

    Royal London launches new Greetham fund From FT Adviser: Royal London's Multi Asset Strategies is the latest fund to be launched for Trevor Greetham and his eight-strong multi-asset team. It targets annualised total returns of cash, defined as the Sterling Overnight Index Average, p

  2. New Launches: AI venture capital firm InReach Ventures launches new $60m fund[more]

    From Telegraph: InReach Ventures, a venture capital firm using artificial intelligence to spot the most promising early stage startups in Europe, has closed a new EUR53m ($60m) fund, as it said the Brexit process would be unlikely to decrease entrepreneurship in the EU. InReach Ventures said it

  3. Outlook: Why Paul Tudor Jones fears a 'revolution', A lot of 'negative surprises' will hit the markets in coming months, hedge-fund veteran Mark Yusko says[more]

    Why Paul Tudor Jones fears a 'revolution' From Institutional Investor: Billionaire hedge fund manager Paul Tudor Jones; Robert Shiller, the Yale University professor who is a co-winner of the Nobel Prize in economic sciences; and DoubleLine Capital's deputy chief investment officer Jeff

  4. Performance: This small Austin based hedge fund founded by a successful Polish entrepreneur is beating market by recognizing growing moats[more]

    From Value Walk: Lukasz Tomicki, the founder of Austin, TX-based LRT Capital, had a life-changing moment after he achieved a degree of success. This led him into the hedge fund business where his emerging strategy has outperformed the major stock and hedge fund indices, he told ValueWalk. How the fu

  5. Opalesque Exclusive: BDO Survey: 89% of GPs expect a downturn within the next two years[more]

    Bailey McCann, Opalesque New York: Private equity appears to be preparing for the worst. 89 percent of private equity fund managers expect a prolonged downturn sometime in the next two years, according to the findings of a newly released survey from BDO. The trade war was cited as a top conce