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Benedicte Gravrand reports from GAIM Invest, Geneva, a conference organised by ICBI (see details Source).
The evolution of hedge funds
Philip Anker, MD at Citigroup Alternative Investments, gave an overview of the evolution of hedge funds. Hedge funds are simply an alternative business models for providing alpha, he said, and the implications are:
- HFs represent a small part of the total assets and risks taken,
- Managers with sustainable advantages should continue to generate strong returns,
- There is competition in the industry but it is between governance structures. HFs appear to be a superior governance structure,
- New structures will evolve to improve on the existing models, and these will improve only if they solve primary problems.
Placed in the context of the active management industry, HFs capacity concerns may be overstated.
Key industry issues – delegate poll
The audience was polled on three industry issues and the panellists provided feedback.
1. The effect of the July and August events in the hedge fund industry; 44% of the audience voted ‘damaging’; 39% voted ‘strengthening’ and 16% voted ‘unchanged’.
Alex Darré, Head of HF strategies at Goldman Sachs Asset Management, London, said that what happened in July and August was damaging at the time but was also strengthening for some ...................... To view our full article Click here
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