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Komfie Manalo, Opalesque Asia:

Hedge funds offer big opportunity when investors will stop using hedge funds as a separate asset class, said Mark Baak, head of the Dutch office for Privium Fund Management which manages $500m in assets. Baak commented at the recent Opalesque 2014 Netherlands Roundtable, "Many hedge funds can be seen as part of existing asset classes. For example, when investors start using long/short equity as a replacement for long only equities, or long/short fixed income as fixed income."

He continued, "A strategy like long/short equity has proven to be much better for investors in terms of risk return than long-only equities. If I have to choose between a broad basket of long-only equities and a selection of long/short equity hedge funds, then I would definitely go for the long/short equity hedge funds. I see some sophisticated and unconstrained investors doing this for many years now."

Baak further explained that the family office that hired Privium to launch fund of hedge funds for them already has equity long/short hedge funds as part of their equity book.

Today, some family offices have started to view a long/short manager to be an equity manager but with more flexibility than a long only manager. The flexibility these investors look for is to go short and to remain in cash when there are not sufficie......................

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