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Benedicte Gravrand, Opalesque Geneva:
Within the alternative investments world, now that distribution channels have opened up and that there are more available products for a wider audience, there are dangers of miss-selling the wrong product to the wrong client. During a discussion on products and buyers at Terrapinn’s Hedge Fund World Zurich conference this week, all the panelists, who offer a variety of products to all kinds of investors, seem to be taking regulatory developments into accounts very closely.
Ariel Sergio Goekmen, director of private banking at Credit Suisse, is of the opinion that hedge fund products should be open to everybody. Democratization is a good thing, he said, even though hedge funds have liquidity issues (investors cannot redeem quickly). And information about these products is easily available through specialists. Credit Suisse analyses hedge funds, advises clients, and also manages $15bn in single manager hedge funds.
The liquidity issue is double-edged for some. According to Paul Graham, global head of alternatives at London-based funds house Gartmore, too liquid funds can be trouble.
“At the end of 2008, we had lost $8bn of AuM in five months because we were liquid and investors in need of cash just redeemed,” he said. “What was important to us is that we gave a lot of cash back, and we were rewarded for that in 2009 with new inflows.” ...................... To view our full article Click here
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