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Cédric Kohler Benedicte Gravrand, Opalesque Geneva: There is a well-known transition among investors in hedge funds between high-net-worth individuals and institutional investors, Ian Hamilton, head of the IDS Group, said during the recent Opalesque Geneva Roundtable. "I see how managers in Zurich or in other countries recognize that the future lies with institutional investors. I wonder where Geneva or the players here are positioning themselves?"
Private banks have retreated significantly from the alternative industry since the advent of new regulations and the 2008 crisis, replies Cédric Kohler, Head of Advisory at Fundana, a Swiss-based independent asset manager. "Some very large banks actually recommend zero allocation to alternatives," he adds.
There are inflows from the pension funds industry, which allocates an average of 5% to the likes of commodities, private equity, ILS, hedge funds, and because of new regulations, convertible bonds with CoCo features or bank loans, he continues. But many Swiss investors are questioning the value proposition of hedge funds, especially those that came in too late and suffered losses in 2008. "Another point I often hear is that when they allocate 5% to hedge funds, they say I want to spend 5% of my time understanding what’s in there, but not more."
There are two other important points to take into consideration, he notes: a new requireme...................... To view our full article Click here
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