Thu, Jul 27, 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. Launches - Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle, Jersey players institutionalize first regulated crypto-currency hedge fund[more]

    Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle From Coindesk.com: The operators of a regulated, Jersey-based bitcoin hedge fund have officially closed a new $5 million fund aimed at investing in cryptocurrency tokens and initial coin offerings (ICOs). Backed by fun

  2. SWFs - China Wealth fund backs TPG lender as part of U.S. property push[more]

    From Bloomberg.com: China Investment Corp., the sovereign wealth fund that controls $814 billion in assets, is betting on U.S. real estate by investing in a commercial real estate lender formed by the money management firm TPG. In conjunction with last week's initial public offering of TPG RE Financ

  3. Months to minutes: Enigma launch aims to boost crypto hedge fund creation[more]

    From Coindesk.com: What if starting a hedge fund was as easy as downloading an API? A startup incubated at MIT Media Lab is today revealing a product designed with this ease-of-use in mind. Called Catalyst, the first product offering by blockchain startup Enigma aims to trigger nothing short of an e

  4. North America - Hedge funds disclose their Puerto Rico debt holdings, US dominates new money portion of Greece's debt sale[more]

    Hedge funds disclose their Puerto Rico debt holdings From Reuters.com: A group of hedge funds that hold about $3 billion of Puerto Rico sales-tax-backed debt released a court filing late on Tuesday that revealed how much of the total amount each fund manages. Decagon Holdings LLC,

  5. $25 million cryptocurrency fund launches to capitalize on the "internet of the future"[more]

    From Coindesk.com: General Crypto, a $25 million cryptocurrency hedge fund, has launched to provide high net worth investors with liquid exposure to the cryptocurrency market and digital assets that they believe could run the technological infrastructure of the future. Since the start of 2017, the t