Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque UCITS intelligence

Assets raising in Europe: The Swiss market for distribution from golden age to regulatory constraints!

Friday, May 16, 2014

The Swiss market for distribution from golden age to regulatory constraints !

In 1969, Rothschild Geneva was also a pioneer in the fund of hedge funds when they launched Haussman Holdings. Some European investors started to look at hedge funds' returns in the mid 1990s but most institutional investors initiated exposure to hedge funds through funds of funds.

The Swiss private banks and their high ultra private investors spotted early the opportunities to access to the double digit returns of the major big US Global Macro Funds. The founder of EIM, Arki Buisson, has been instrumental in distributing these funds in Switzerland and became legendary for his accesses to the top US managers.

Man Investment, RMF were also pioneers in 1998 when initiating a worldwide distribution of Managed Futures funds and funds of funds. Suddenly the small town of Paffikon, near Zurich, became known worldwide ! and offices started to replace the peaceful grasslands...

Post 2008

Both private and institutional investors started to discover what liquidity risk means when suddenly an estimated 30% of the hedge funds announced gates and side pockets. After 6 years, the market still remembers the hard experience of secondary markets for hedge funds and the difficulty to value some investments. This experience has left traces.

The sell off was dramatic, shortly followed by exposures in Madoff which had about 50% of its assets from Switzerland. The local flavour remained negative on hedge funds but liquid regulated funds started to be in demand from 2010.

The Managed Account model provided an alternative to the funds of funds. At the same period, the Swiss market went through major changes in its positioning a tax heaven for the rich of this world. The Swiss market became quieter for distribution of hedge funds.

However, performances continue to attract high net worth investors. The distribution of funds in Switzerland might be more discreet and confidential but still remains a key market for the top 10 hedge fund managers as well as the prime UK managers with their strategies in UCITS format. The Marshall Wace, Renaissance, Millenium, Winton or Landsdown have been mentioned as very successful fund raisers in Switzerland. The two major Swiss banks and the well known private banks such as Pictet or Lombard Odier remain the biggest allocators for their wealth management arms.



 
This article was published in Opalesque UCITS intelligence.
Opalesque UCITS intelligence
Opalesque UCITS intelligence
Opalesque UCITS intelligence
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 - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar