Sat, Feb 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Citi sees growth as hedge fund institutional advisor

Tuesday, March 23, 2010
Opalesque Industry Update - Citi’s global prime finance chief Nick Roe has announced that Citigroup Inc., would double the size of its team advising pension and government-backed funds to expand its hedge fund consultancy services, various media reports said.

Roe told Bloomberg.com that Citi aims to build a 60-person consulting team within 18 to 24 months with Asia getting the biggest number of advisors as the bank, which is still 27%-owned by the U.S. government, expands its consultancy services to the region.

“We see it as one of the major growth areas for us. The pension funds, the institutional asset market are going directly to hedge funds. It was the reverse of what the investor profile was two years ago,” Roe told Bloomberg.com.

The report also cited a Morgan Stanley study released in November last year which showed that pension, sovereign wealth funds and foundations overtook endowments and funds-of-funds targeting wealthy individuals as the largest source of capital for hedge funds.

Indeed, another study made by Preqin showed that sovereign wealth funds (SWF) and institutions have shifted their focus from fund of funds to direct investing into hedge funds. Preqin said that SWF activity in alternative asset classes is considerable, with 55% of these investors known to invest in private equity, 51% in real estate, 47% in infrastructure and 37% in hedge funds.

The trend can also be noted in recent activity by the Ohio School Employees Retirement System, Columbus which announced on Monday it has committed at least $160m to alternative investments, including $30m each to hedge funds BlueCrest International Ltd., Eminence Fund Ltd., Level Global Overseas Ltd., and New York European Opportunities Unit Trust, reported PIonline.com. The system also committed up to $40m to Monomoy Capital Partners II LP, a U.S. middle-market buyout fund. The commitments by the $9.4bn pension fund were approved at a March 18 board meeting, spokesman Tim Barbour said.

Last week, the Illinois Student Assistance Commission, Chicago allocated a total of $135n to three hedge fund managers, its first move in the area. The three are among 13 hedge fund firms approved to run assets of the $982m College Illinois! Prepaid Tuition Program fund.

Also last week, the $129bn New York State Common Retirement Fund launched an initial $200m emerging manager program for hedge funds and plans to develop an emerging manager program for real estate in the near future. The initiatives follow the fund's recently announced plans to allocate up to $450m more under its emerging manager private equity program.

New Jersey's $67bn pension fund announced plans to increase its hedge fund investments to protect against losses in the stock market, according to a memo prepared for a meeting later this week of the State Investment Council. -PD-

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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie