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Alternative Market Briefing

Allocations: Global macro, volatility and keeping only `aggressive` L/S managers, French asset manager reshuffles hedge fund allocations

Thursday, February 28, 2008

NewsManagers.com reported that Paris-based OFI Asset Management, in a newsletter last week, described its hedge funds allocation plans for 2008: the firm wants to bet on global macro strategies; increase allocations to volatility funds; keep the long-short equity managers who are aggressive, rather long and focused, who can express their convictions, and also managers who are prudent and contrarian; reduce allocations in arbitrage strategies; start an allocation in distressed strategies, whilst being careful with the timing which should be good at the end of the first semester; expand the commodities universe; avoid long-only commodity managers; and be aware of the narrowness of raw material futures markets.

Created in 1971, OFI’s trademark is ‘Alpha generator’. An independent player in the asset management industry, OFI offers French and European investors a broad spectrum of investment solutions built using a unique, methodical open-architecture approach. A group with expertise in a number of areas across a range of asset classes experienced in putting together multi-manager portfolios, OFI AM resolutely focuses on absolute performance.

One of OFI’s fund of alternative funds, the Oval Palmares Europlus fund, was incepted in 1998, manages €110m ($166m) and returned -0,46% in January. It received a 5-star rating from Morningstar last summer. Derivative Fitch published in May 2007 a report on Ofi Asset Management as the firm managed three investment grade synthetic C......................

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