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By the Opalesque team:
Eraam, a 10-year old independent fund manager based in Paris, had Eur1bn (US1.5bn) in AuM in 2008, 60% of which from private clients, 40% from institutional clients. Today, the firm's AuM are at Eur400m ($603m) following heavy redemptions from private clients.
Cyril Juliard, co-founder of Eraam, recently told NewManagers (on Boursorama.com) the reason why private clients - who mainly came through banks - redeemed was that they did not fully understand alpha or the 2008 crisis. The company has since separated its range of products between those to be offered to private clients and those for institutionals.
For private clients, he said, "the objective is to offer simplicity and liquidity, as well as making sure there are no gaps between expectations and what can actually be achieved." So, long/short equity funds are on offer.
For institutional clients, who need more diversification, Eraam launched at the beginning of October an absolute return fund, de-correlated, and with maximum volatility of 8% - a clone of a mandate that Eraam has been managing for Calpers for the last three years. Eraam hopes to raise Eur30m for this fund, called the ERAAM ALPHA Fund, which invests exclusively in European hedge fund managers. The Eur2m fund has returned -0.60 % so far. Among Eraam's other FoHFs, the Eur86m Multistrategies II is up 2.18 % YTD; and the Eur43m Long Short II is up 4.54 ...................... To view our full article Click here
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