Sat, Aug 1, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner