Mon, Nov 20, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

FoHFs managers look to liquidity - S&P

Tuesday, July 13, 2010
Opalesque Industry Update - Building on decent absolute performance in the second half of 2009, funds-of-hedge-funds(FOHFs) managers have continued to improve liquidity in portfolios, maintaining significant allocations to long/short equity hedge and global macro.

“FOHFs managers have taken a variety of steps to improve liquidity in portfolios, including investing with hedge fund managers by way of managed accounts, restricting investment to the more liquid strategies, and setting up new funds-of-funds that invest in Ucits III-regulated products,” notes S&P Fund Services lead analyst, Randal Goldsmith.

Reacting to these changes in investment approach, and acknowledging the important role these new vehicles play for investors in the current low-interest rates environment, S&P Fund Services has created a new fund group within its FOHFs’ Directory, containing five Ucits III-regulated funds-of-funds, and a UK-authorised fund-of-alternativeinvestment- funds (FAIF).

Looking forward, despite a lack of strong consensus from FOHFs managers about strategies, there was some agreement that low-beta equity hedge could do well. “FOHFs managers we spoke to have mixed views, but a number think that low-beta equity hedge fund managers should do well,” commented Goldsmith. “Permal's Robert Kaplan makes the point that we have had two years of stock returns driven almost entirely by market direction, during which there has been limited differentiation by stock-specific issues. This leaves good opportunities for stockpickers, in his opinion.”

This year, for the first time, S&P Fund Services has reviewed all funds at the same time to better compare FOHF performance records. It continues to look at FOHFs against their own objectives, but 2008 threw many off course, and so it has been necessary to take a closer look at a FOHF's performance relative to other funds with a similar approach and strategy mix.

Click here to download the full report "Funds-of-hedge-funds Sector Overview July 2010": Source

Corporate website: standardandpoors.com

- FG

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. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  2. Launches - Eaton Vance, Oaktree to launch diversified credit NextShares fund, FIM launches Nordic AI-powered fund[more]

    Eaton Vance, Oaktree to launch diversified credit NextShares fund Eaton Vance Management, a subsidiary of Eaton Vance Corp., announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares, a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Va

  3. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W

  4. Investing - Six more Warren Buffett buys, including Southwest Airlines, Seth Klarman's Baupost Group bets on beaten-up health care, Roark Capital offers to buy Buffalo Wild Wings: Wall Street Journal[more]

    Six more Warren Buffett buys, including Southwest Airlines From Forbes.com: Our latest recommendation for aggressive investors is Restaurant Brands International . Hedge fund manager Bill Ackman has an incredible 40.1% of his fund at Pershing Square Capital Management invested in Restaur

  5. Investing - Tages Capital steps in to rescue Italy's Banca Carige, Hedge funds place $5.4bn bet on Toshiba's resurrection, Why outside investors are fleeing: John Paulson's 6 worst investments[more]

    Tages Capital steps in to rescue Italy's Banca Carige From TheTimes.co.uk: A little known London hedge fund has played a pivotal role in the first rescue of an Italian bank without state intervention since the country's bad debt crisis started three years ago. Banca Carige, a Genovese le