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Alternative Market Briefing

GAIM Invest 2007, Day 1 – On new ideas in the alternatives arena, Horlick`s Bramdean Asset Management shifts to alternatives: Pension should allocate up to 50% to alternatives excluding property, political resistance to globalisation and what investors (really) want

Wednesday, December 05, 2007

Benedicte Gravrand reports from GAIM Invest, Geneva, another popular conference organised by ICBI (see details here).

Seismic shifts in alternative asset management Seizing opportunities for growth and bringing alternatives to the masses. The famed Nicola Horlick, CEO at London-based Bramdean Asset Management, started the conference off with a speech on her insights and recommendations.

Diversity is all about investing in other asset classes, she said. The likes of Yale and Harvard have greatly benefited from diversity. They understand it and include many pools in their portfolios. The HNW market is also now making a big move towards diversification, putting 10 to 25% of assets in alternatives. She expects more assets in alternatives from this market going forward. The UK pensions only invests 3% of their assets in AI (whereas the Swiss invest 25%), largely due to under-funding and too much invested in equities. The allocations will increase though.

Alternative investment ideas: There is a whole area of investments one can tap into nowadays. For example, Bramdean is looking into investing in film music, which involves funding films’ musical production and keeping the rights. This investment is totally uncorrelated to traditional assets.

Private equity is equity but it does not move in the same way - although it is likely t......................

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