Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Australian bank to invest $400m in U.S. fund of hedge funds

Wednesday, May 25, 2011
Opalesque Industry Update - The asset management division of Westpac Banking’s off-shoot BT Financial Group is set to unveil a new hedge fund portfolio, reported The Australian Financial Review today.

The manager for the new product, the Advance Multi-Blend Alternatives Portfolio, which aims to return between 4% and 5% above the official interest rate (after fees of 0.98% base and 10% for performance), will be U.S.-based Ramius Alternative Solutions.

With an expected capital of $400m, the portfolio comprises 14 hedge funds and a portion “aiming to replicate hedge fund exposures through derivatives.” A third of the fund would not be immediately liquid, but it otherwise offers daily liquidity and will be available on the BT and Asgard platforms for direct investment.

Listed BT Investment Management tried a similar venture in the past with the BT Global Return Fund, but it had to be abandoned in 2008 as U.S. hedge fund manager Grosvenor Capital Management encountered severe redemption freezes. The fund was terminated in 2009.

On a separate note, The Australian reported last week that Australia’s big four banks (including Westpac) may be the target of shorting by global hedge fund managers, following the sector-wide credit rating downgrade by Moody's. Central to Moody's decision was its concern about the sector's dependence on wholesale funding markets, which sits around 40% on average, the paper said. Westpac was thought to be the most vulnerable.

This is not Ramius' first Australian business venture: as the global alternative investment management business of New York-based investment bank Cowen Group, , it entered into a partnership in April 2010 with Perpetual Investment Management, Australia’s largest investment services group, in which it started managing two separate customized funds of funds products.

Ramius is represented by Triple A Partners in Australia.
B. Gravrand

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner