Thu, May 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Horizons: Family Office & Investor Magazine

Q&A With PHF Capital's Peter Fletcher

Sunday, March 11, 2018

Opalesque: You are well known as a hedge fund investor and seeder. But you haven't been as positive on hedge funds lately, where do you see the industry headed?

PF: Hedge funds aren't an industry to me. I remember when it used to be a handful of people meeting up and working on ideas. The number of hedge funds has grown, surely, but they aren't as fun anymore. The alignment of interest with investors isn't there. No one had a problem paying 2/20 when the returns were there, but 2/20 for 7 percent is too much. I'm looking at alternatives to alternatives now. Globally, for example, family offices are doing more direct equity transactions among themselves, which I think is interesting.

Opalesque: As a consultant to family offices what are you working with them on? What are the key issues families are dealing with today?

PF: The biggest issue families face is transition and wealth preservation between generations. Families have a hard time moving from one generation to the next. That's why you see so many of them go to the third generation and then quit. People are different generation to generation and they have different goals. Preserving wealth for each generation is difficult.

Opalesque: How are family offices changing?

PF: More of them are developing a social vision and I think that's a positive sign. I've started working with foundations and families that are setting up foundations. There's a shift within the younger generations, they want to look at impact investing - they want to create positive outcomes. So, that's going to change how people think about their investments and what they d

Opalesque: Let's talk about investments. You're a thematic investor. What themes have your attention right now?

PF: Pandemics. If you start reading the reports on what's happening with the flu right now, or with superbugs - that can't be cured with antibiotics, there is a lot to think about there. The way we think about healthcare will have to change if we want to reckon with any of this.

I'm also looking at how we think about money. If you look at how technology is poised to change industry, it's innately deflationary. So we have to think about money differently in that context.

Another thing I'm looking at is cardboard.

Opalesque: Cardboard?

PF: Yes. If you look at how we're shopping now, it's all online. Everything comes in cardboard. So it's been interesting to learn more about who makes it, how it's used, there are opportunities there. Sometimes a theme can be big like pandemics, sometimes it's smaller like everything showing up at your house in a cardboard box.

B. McCann

 
This article was published in Opalesque's Horizons: Family Office & Investor Magazine.
Horizons: Family Office & Investor Magazine
Horizons: Family Office & Investor Magazine
Horizons: Family Office & Investor Magazine
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 - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven