Posts Tagged “Fund of Hedge Funds”

Are fund of funds finished?

June 15, 2020

The expert faculty discussion on the reinvention of the value proposition of funds of funds in a post-Madoff world seemed to conclude that funds of funds are alive, but only gently kicking, after an exhausting round with redemptive investors. Moderator Kenneth Phillips of Hedgemark International reported surprise at the amount of redemptions that came through in the crisis. “What drove them to redeem?” he asked. Nicholas Hannan of Oakley Alternative Investment Management puts it down to a loss of confidence in a business that they thought wouldn’t lose them money in a global crisis. “It was a fundamental disappointment” he said. Stephen Oxley of Paamco found that the largest part of redemptions came from private investors. “We didn’t experience so many redemptions because our institutional investors understood what they were seeing.” Cedric Kohler of Lombard Odier agrees. “Investors who were late to these types of investments had never redeemed or gone through the redemption process before. Amaranth, LTCM were on their minds so there was a big rush to get out.” Stephen Oxley believes funds of funds had essentially been mis-sold and Roberto Guiffrida from Permal pointed out that many private banks had allowed investors leverage on top of hedge fund of fund portfolios and that in addition structured products added to total leverage - all of which exacerbated the final crisis. Going forward, funds of funds are determined to deliver what investors want although they may change their name - manager of managers anyone?

Post Under: Asset Management

UCITS & Managed Accounts

May 26, 2020

An Interview with Mussie Kidane, Pictet.

Mussie Kidane will be speaking at GAIM International 14-17 June 2020 in Monaco

Mussie Kidane, head of fund selection at Pictet, is speaking at GAIM this year in the Investor Summit on UCITS and Managed Accounts. UCITS have gained unexpected support over recent years as the strength of their passporting characteristics has gained and the breadth of fields in which they can investment has widened.

Kidane heads a six member team at Pictet, responsible for selecting best in breed managers across all asset classes and catering to Pictet Wealth Management globally. The team also picks managers for all the sub-advisory agreements for Pictet funds. Kidane also manages a US$ 420 m absolute return fund of funds. He is speaking at GAIM International 2010 on how asset allocators can utilise UCITS.

“For me, coming from a traditional background, UCITS is familiar ground in terms of the legislation and the constraints” he says. “We know what to expect from these types of products.”

The ability to use alternatives within a regulated vehicle is very attractive to Kidane. “With the new UCITS, we are bringing a talent base which is not familiar to long term long only investors” he says. “The attraction is that it brings a wealth of talent into a more regulated environment.” Read more »

Post Under: Asset Allocation

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