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Sixten Eriksson by Beverly Chandler, Opalesque London:
Sixten Eriksson, managing partner of new fund group Generation Asset Management believes that the impact of Madoff and the 2008 market meltdown have caused the traditional hedge fund business model to struggle more and more, particularly in attracting assets from new clients.
Generation Asset Management is majority owned by Canadian Arrow Capital Management, a 12 year old hedge fund business and the whole group has $1.2bn under management, $900m in Arrow and the balance in Generation and the European businesses. Generation in turn has recently bought Deltec Investment Advisers, a UK based private client money manager.
Eriksson believes that the long only industry is equally out of step with investors: "The long only industry has suffered from a lack of transparency, high costs and index-linked approaches have caused problems" he said.
Generation's solution is to offer products with the hedge fund mentality of actively managing money but to bring it onshore to the Ucits world.
"We're not looking at hedge funds because I think it's very difficult for new hedge fund managers to distinguish themselves from all the other traditional Cayman-based, monthly liquidity, 2 and 20 structures" he said. Another problem lies in the ongoing regulation where more investors are prohibited from investing in non European-based entities. "Also people want daily or weekly liquidity and they want lower...................... To view our full article Click here
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