Fri, Dec 9, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest