Sat, Jun 25, 2016
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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider