Sat, Apr 18, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

CapIntro study: Attractive opportunities among hedge funds post-2008

Tuesday, September 15, 2009
Opalesque Industry Updates – Capintro outlines the opportunities available to investors in 2009/2010

U.A.E.-based Capintro Partners released a study analyzing the impact of the events of 2008 on the hedge fund industry. The study indicates that the severe tests of 2008 led to impactful structural changes in the industry giving way to attractive opportunities for hedge funds. The report makes a compelling case for having hedge funds as a strategic long term investment within a diversified portfolio.

Capintro Partners highlights five key changes in the industry: * For more details please refer to the full research titled Hedge Funds: A More Compelling Investment. (Please email marketing@capintropartners.com for copies.)

1) Assets in the industry have substantially declined due to investor redemptions, weak performance and flight to quality. The reduction in assets allows for outsized positive performance due to reduced competition among hedge fund managers within the same strategy.

2) The number of managers in the industry has also decreased, further reducing competition leading to wider spreads and an opportunity for larger gains.

3) Hedge funds have historically outperformed post crises and have performed well preserving capital throughout historical crisis events.

4) Hedge fund returns have varied more widely causing dispersion among manager returns to increase and correlation among managers and hedge fund strategies to decrease. This allows for greater diversification benefits to investors and leads to higher risk adjusted returns.

5) In order to attract new assets, managers are offering investors various incentives that may include access to closed funds, higher levels of liquidity, greater transparency and/or reduced fees.

Strategies that trade liquid securities and are able to take advantage of the volatility in global markets will be better positioned to outperform. Capintro favors the following strategies for the remainder of 2009:

1) Global Macro
2) Arbitrage
3) Equity Hedge

“It’s important for investors to realize that the current environment presents substantial opportunities for hedge fund managers and in turn for them. Our objective is to help uncover these opportunities, specifically in the aftermath of the events of 2008 and the massive de-leveraging that took place within the financial system” said Mahmoud Al-Khawaja, CEO of Capintro Partners.


About Capintro Partners, Ltd.
Headquartered in the United Kingdom with a representative office in Dubai, Capintro undertakes a range of activities including, but not limited to, placement services of actively managed funds and direct investments in the alternative investment industry including hedge funds. Aiming to become a leader in the investment product placement business, Capintro will bridge a gap between global investment managers and institutional and high net worth clients throughout the MENA (Middle East and North Africa) region.

www.capintropartners.com


Be

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. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner