Opalesque Industry Update - On June 29, 2012, Van Eck Associates Corporation acquired a Hedge Fund Beta business and team from Lyster Watson & Company, and will be offering a suite of strategies called Trackers.|
Trackers are hedge-style "beta" strategies based on indexes developed using a patented methodology and proprietary intellectual property. Each index seeks to capture the beta of a specific hedge fund strategy, and the Trackers team focuses only on those hedge fund strategies whose returns can be statistically replicated using tradable risk factors represented by US-listed ETFs. The team believes that not all hedge fund strategies are conducive to this approach.
Originally developed in 2003, the underlying concept that forms the core of the Van Eck Trackers helps create investment strategies that provide institutional investors with high transparency, daily liquidity and low fees. The Trackers business currently includes the following indexes:
-- Long/Short Equity North America Tracker Index
Two Tracker strategies, with over $75 million in assets under management, are currently offered: Van Eck Long/Short Equity North America Tracker and Van Eck Long/Short Equity Emerging Markets Tracker. The team of Marc Freed, Mark Hurrell and Ben McMillan will manage the Trackers business for Van Eck Global.
"We're very excited to add the Hedge Fund Beta Team and its sophisticated methodology to our alternatives group," said Jan van Eck, Principal of Van Eck Associates Corporation. "Their innovative approach to tracking hedge fund performance is a great fit with our existing alternative strategies and is an approach we believe has applications for investors looking to build and manage a diversified alternative investment portfolio."
"The Van Eck team has over a 50 year track record as an innovator in investment management, and is building out a very attractive family of alternative investment funds," said Mark Hurrell, Director, Tracker Institutional Sales. "We look forward to the continued development of innovative strategies to meet investor needs in the increasingly important area of alternative investments."
Van Eck has over 15 years of experience in alternative investments, and offers single- and multi-strategy funds in addition to separate accounts. Van Eck also sponsors the Market Vectors family of ETFs, currently the U.S.'s fifth largest provider of ETPs and eighth largest worldwide. Market Vectors ETPs have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets.
Van Eck Associates Corporation was advised by Right Wall Capital on this transaction. Terms were not disclosed.
About Van Eck Global
Van Eck also offers mutual funds, insurance trust funds, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global's investment strategies are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments. www.vaneck.com