Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Institutional investors look at hedge funds as an alternative to fixed income

Thursday, November 05, 2015

Komfie Manalo, Opalesque Asia:

Institutional investors are looking at hedge funds for higher returns and to diversify their portfolio, as yields in bonds falter because of low interest rates, said Bruce Amlicke, chief investment officer of UBS Hedge Fund Solutions.

Amlicke, who heads the UBS $34.4 billion hedge fund platform, that invests in 230 funds globally, told Bloomberg in Singapore that institutional investors’ hedge allocations are generally in the high single digits but can reach as much as 20% of their portfolios. It was "a couple of percent less" five years ago.

Amlicke told Bloomberg, "Monetary policy responses to drive interest rates lower pushed fixed-income markets and yields to a level where you can look at hedge funds as an alternative to fixed income. It’s a global phenomenon."

Eamon McCooey, head of prime services at Wells Fargo Securities, echoed this view. He said that hedge funds are drawing more business from institutional investors that are seeking some yield in a low-rate environment.

"We’re more in pensions and endowments coming into hedge funds, looking for enhanced yield," he told Forbes. "The gestation period for them to make an investment is often much ......................

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