Tue, Jan 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

In the ETF era, emerging managers could stand out

Tuesday, January 09, 2018

Bailey McCann, Opalesque New York for New Managers:

According to recent data from EY, asset flows into ETFs could increase by as much as 73 percent over the next two to three years. As investors flock to these lower cost vehicles, it will become harder and harder for large hedge funds to justify their fees and lockups. Delegates at the recent Opalesque Chicago Roundtable suggest that the push into ETFs could create unexpected opportunities for emerging managers.

Scott Billington, Co-Founder, Covenant Capital Management notes that emerging managers can take advantage of micro-market opportunities created by ETFs that might otherwise be ignored by larger hedge funds. "Trading around these ETFs that have published formulaic rules that they have to follow in the exchange of their underlying instruments, whatever they might be, can be meaningful," Billington explains. "I do think that can create a number of potentially exploitable inefficiencies. And then perhaps so many people come in and try to do that that other inefficiencies appear elsewhere."

By being able to take smaller positions and react dynamically to changes in the market, emerging managers could have a leg up over larger funds, where small trades are uneconomic. Billington's view was echoed by Anthony Lombardi, Associate Partner, at consulting firm Aon Hewitt. "When we talk about managers who are looking to exploit certain......................

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. Opalesque Exclusive: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager