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Komfie Manalo, Opalesque Asia: The financial industry is experiencing an interesting moment because of the fusion that is happening between traditional and alternative investments said, Gregoire Haenni, CIO of the Pension Fund of the State of Geneva, during the latest Opalesque Geneva Roundtable. This fusion, he said, is benefitting investors globally.
Haenni said, "And what is interesting for institutional investors is that we benefit from the best of both worlds. For example, we like transparency, we like liquidity, we like the low fees on one end, and then on the other end we like agility and the ability of the manager to preserve capital, or to deploy a strategy that delivers alpha over long run."
Haenni made the statement in response to a question whether a higher fee level charged by a fund manager would also translate to better returns.
Haenni, who also served as CIO of the CERN Pension Fund, gave the following example for that fusion where after having identified managers that could deliver alpha over the long run he asked them to adapt their alternative strategy towards a long-only strategy, but with a twist: "So the long book was managed pari-passu, and the short book was simply replaced with an index. In addition to that they had to imply analytical filters – no gaming, no weapons and so on – and the fees were reduced significantly. Those strategies worked extremely well...................... To view our full article Click here
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