Tue, May 30, 2017
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. 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,

  2. 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

  3. 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

  4. AI-based hedge fund brings machine learning investing to masses[more]

    Komfie Manalo, Opalesque Asia: Machine learning-based hedge fund firm Greyfeather Capital is trying to bring artificial intelligence investing to the masses with its plan to expand beyond the limited reach of the alternative investments space. "We're excited to bring AI technology to traditio

  5. Outlook - Iconic hedge fund manager Seth Klarman says investors are missing huge risks, Paul Singer warns of a world at risk[more]

    Iconic hedge fund manager Seth Klarman says investors are missing huge risks From Businessinsider.com: An iconic hedge fund manager says investors are misperceiving risks in the markets - at a time when markets are hitting historic highs. Baupost Group's Seth Klarman laid out his concern