Posts Tagged “Hedge Funds”

A complete round up of news and views from GAIM International 2010

June 24, 2020

GAIM International is the “must attend” annual hedge fund conference.  The 2010 event continued that tradition, 16 years in the making.  In addition to the coverage of the event by Beverly Chandler,  we’ve gathered the leading articles and commentary from the business news websites to give you a comprehensive review of this years hugely successful event.  B.H. Fraser provided an alternative view of the industry as Poet in Residence.

We have captured a series of video interviews with some of the industry leaders which will be posted on this site over the coming weeks.   To make sure you don’t miss out, either add the RSS feed to your reader or sign up for email alerts.


Some key quotes from industry players - Reuters

What does Gerlof de Vrij, Head of Global Tactical Asset Allocation at APG think about hedge funds as a liquid asset class and thoughts from other industry leaders as the sector wrestles with challenges from regulation, consolidation and market volatility…. more here


Flat currencies to lose value against real assets - Reuters

Veteran hedge fund manager Bill Browder is buying commodities and the companies that produce them in emerging markets to profit from what he said is a looming crisis in the world’s major currencies…. more here


Hedge-Fund Survival Skills to Be Tested by Increased European Regulation - Bloomberg

“The survival instincts that many hedge-fund managers have in markets they’re also going to have to display in facing up to regulatory challenges,” Rick Sopher, managing director of LCF Edmond de Rothschild Asset Management Ltd…. more here


Macro hedge funds best despite May dip - Reuters

Hedge funds taking directional bets on markets will be among the best performers in 2010 as concerns over the health of major economies continue to dominate markets, said Lombard Odier’s head of hedge funds advisory… more here


Executives sound warning on hedge funds UCITS boom - Reuters

“It’s very difficult, if everyone seeks daily liquidity, to invest in hedge funds properly,” said Steve Friedman, managing partner of EOS Partners… more here


The Mirror Crack’d - FT Alphaville

Mike Novogratz, one of the founders of the giant Fortress Group, and Hugh Hendry, the voluble manager behind the definitely smaller but in some ways no less influential Eclectica Asset Management, slugging it out…. more here


Hedge Fund investors almost double macro bets as global trades proliferate - Bloomberg

Hedge funds that bet on economic trends are attracting cash at almost double last year’s pace as they seek to profit from events such as Europe’s sovereign debt crisis and China’s decision to let the yuan trade more freely…. more here


Seed investors return to start-up hedge funds - Reuters

Sovereign wealth funds and pension funds are backing start-up or small hedge funds again, said FRM Capital Advisers… more here


Mammon and Montrachet - FT Alphaville

What do eastern mysticism, violence, mammon, and am dram have in common? They are all dinner and drinks topics of conversation amongst hedge fund managers in Monaco…. more here


Sand, sea and SEC - HFM Week

While managers gathered in a stormy south of France last week, for Monaco’s annual GAIM International event, pondered the labyrinthine twists of EU and US regulatory developments, investors jetted in with a different set of priorities… more here


The Great Investing Dilemma of 2010 - Market Melange

The notion of negative Chinese GDP growth is widely regarded as a near impossibility –much like the notion that house prices would keep going up for ever – scary thought! …. more here


Hedge Funds Turn Mutual Funds to Short-Circuit European Rules With NEWCITS - Bloomberg

Guy Hurley said he’s not sweating European plans for new hedge-fund rules after leaving Bank of America Corp.’s Merrill Lynch & Co. a year ago to start an onshore fund that uses strategies such as merger arbitrage…. more here


Byron Wien sees a bottoming in stock prices and the possible return of $10 billion-sized buyouts - Reuters

Wien, who is well known for his annual predictions and who correctly called the rebound in China in 2009, said he was not as bullish as at the start of the year but nevertheless thinks a deterioration in the sovereign debt crisis will be avoided… more here


Man Group Won’t Make Significant Acquisitions After GLG, CEO Clarke Says - Bloomberg

“It is effectively job done for our liquid trading strategies,” Clarke, 49, said today at the GAIM International hedge-fund conference in Monaco. “It’s possible we could infill with smaller mergers in Asia-Pacific.”…. more here

Post Under: Economic Outlook, General

Everyone’s talking about us.

June 16, 2020

Bears stalk hedgie jamboree - Reuters

After 20 percent gains in 2009 and a year of inflows, you might expect the mood in Monaco at the annual GAIM hedge fund conference to be jubilant. Indeed, Martin de Sa’Pinto has identified some crucial developments in delegates’ late-night carousing which point to some renewed confidence…. more here


Blackstone’s Wien says Hedge Fund returns could halve - Bloomberg

Byron Wien, vice chairman of Blackstone Group LP’s advisory services division, said hedge fund returns may shrink by half as firms seek to protect investors’ capital.   Returns may drop to 10 percent from 20 percent as funds lose their “zeal,” Wien, 77, told the GAIM International hedge fund conference at Monaco’s Grimaldi Forum today. more here


Transparency, fees, main hedge challenges-managers - Reuters

Hedge funds are facing growing pressure for more transparency and lower fees as investors seek to better understand their investments and get more perceived value for money, managers said on Tuesday at GAIM International. more here

Post Under: General

Industry growth

June 15, 2020

Yariv Itah, Casey Quirk, speaking at GAIM International 2010, 14 - 17 June in Monaco

Speaking at the opening session of GAIM, Yariv Itah, partner at Casey Quirk, predicted growth in the hedge fund industry to US $ 2.8 trillion under management over the next three to five years, half of which would be in funds of funds. Growth is the only opportunity for Itah, while significant challenges lie  in the form of changing investor behaviour, changing distribution dynamics, changing regulation and changing compensation structures.

Post Under: Asset Management

A volatile year so far….

June 11, 2020

An article by Beverly Chandler.

Beverly Chandler will be covering GAIM International 2010, 14 - 17 June in Monaco

This year so far has brought a huge variety of drama for the world, not just for the hedge fund industry.  But our focus here is on our industry and recently it has had to deal with debt, volcanic ash, government change, regulatory and tax challenges and unprecedented wild weather.

Despite everything thrown at it, hedge funds appear to be not just surviving but actually getting back to business and thriving.  Recent research showed in-flows to global hedge funds in February at US$ 16.6 bn and March saw US$ 7.6 bn.  Assets in the industry are now at the highest level for 16 months at US$ 1.64 trillion.

Just as that volcanic ash is beginning to settle, so has the dust of the credit crisis begun to settle as people get back to work, albeit with a new awareness of how scarily close to wrecking it all the economic world came.  And with that realisation has come a raft of regulatory and supervisory proposals, designed to stop a banking and financial crisis on that scale happening again.

The European authorities are just about to announce the outcome of a lengthy process which started with what many felt was a knee-jerk reaction to the financial crisis.  The justification of new legislation aimed at curbing the activities of hedge funds and private equity funds was to mitigate systemic risk but as the Alternative Investment Management Association (AIMA) repeatedly claims, there is little evidence that hedge funds caused the crisis.

While proposals were Europe-wide, the greatest concentration of European hedge fund activity is clearly in England and so it was the British hedge fund community that felt increasingly targeted by an almost vindictive regulatory campaign.

The next wave of attack came in proposed tax changes, coming at the hedge fund industry from all sides, the IMF, the EU and within the UK, from the pre-election success Conservatives. Concerned that banks might re-invent themselves as hedge funds in order to avoid paying proposed new taxes on their profits above a certain level, the IMF proposals included hedge funds and alternative funds in new levies that could add an additional 20 per cent tax on the pre-tax profits of certain banks and other financial businesses.

And who would be most affected by any of these changes?  The investors, who according to a new report in the US, are quite likely to be investors in public pension funds.  The report finds that public pension funds by dollar value, are the largest of the institutional allocators of capital to hedge funds.

Attracted to hedge funds by their uncorrelated returns, institutional investors did take fright at the lack of liquidity in hedge fund and fund of funds during the financial crisis.  And that need for liquidity has certainly been a driver for another trend we have seen over this year so far, the growth of so-called hedge fund-lite products in Europe, which show that UCITS funds (European ‘passported’ funds) have taken in US$ 200 bn since they were first allowed to include hedge funds.

Critics of the hedge fund industry - and there are a few, although not many may be reading this -  just have to remember that over 2008 the S&P 500 recorded a 37 per cent fall while hedge funds, on average achieved losses of 19 per cent.  Hedge funds experienced loss but less of a loss than traditional long only investments and while that still happens, they will always prove popular with investors.

About Beverly Chandler

Beverly Chandler has been a specialist hedge fund writer for a number of years, writing for most of the trade press, a number of national newspapers and publishing a couple of books on the subject.  She will be covering the GAIM International 2010 conference, producing a daily digest of the key outtakes from the event, and interviewing speakers & delegates about prevailing industry trends, their views of the future and why GAIM International is the “must attend” conference in the annual calendar.

Broadening access to the benefits of Hedge Funds

June 8, 2020

An Interview with Peter Clarke, chief executive, Man Group plc

Peter Clarke, Man Group plc will be speaking at GAIM International 2010, 14 - 17 June in Monaco.

For Peter Clarke his GAIM International 2010 panel session will focus on many of the themes which echo other industry commentators.  “I will talk about how people are looking at return streams from hedge fund strategies in the context of how to manage the risk associated with their wider portfolios” he says.

Clarke feels that investors are thinking carefully about how they access hedge fund exposures.  “They are asking what format can I use and who do I rely on for generating that return stream and what sort of characteristics do I want from that?”

This trend goes hand in hand with a broadening of access to the benefits of hedge funds.  “It’s not just portfolio allocation but also, increasingly, the question of a wider audience looking to access return streams from hedge fund strategies - they are not just the purview of institutions or the very wealthy.”

Clarke also feels that there is greater concern about regulation and safety in investment.  Here, he feels that the UCITS vehicle has helped put investors at ease.  “The UCITS structure offers a mechanism for a wider investor base here in Europe” says Clarke. Read more »

Pitching to Investors – the most common mistakes made by Hedge Funds

June 7, 2020

TOP TIPS from Benjamin Ball Associates

Many hedge funds could be better at pitching to investors.  From our work, helping teams pitch and persuade more effectively, we have identified the five  most common investment pitching mistakes: 

1.     Not understanding the investor.

Too many people go out with a generic presentation and expect it to work for everyone.  You should personalise for each investor.  For example, their attitude to risk, their history of investing and their mandate will all drive how they listen to you.  By  understanding what matters to that investor you can become very persuasive.

2.     Over-reliance on Power Point.

While written materials are important, an investor pitch meeting is all about the people.  Don’t let your document drive the meeting.

3.     Too much focus on you.

A good investment pitch is about the investor, not about you.  Let them be the centre of attention. Make it a dialogue.

4.      Not clear enough.

The most persuasive pitches are the simplest.  If you can’t make it easy for the investor then nobody can.  If your pitch is complex, what will your reporting will be like?

5.      Lack of rehearsal.

Rehearsals are for wimps? Tell that to Tiger Woods, David Beckham, Barack Obama, David Cameron and Richard Branson.

To get a great pitch together is not easy. For most people, a fresh perspective and a systematic approach to the pitch process is what is needed.


About Benjamin Ball Associates

Benjamin Ball spends his time helping management teams win pitches and commuhnicate effectively in investor presentations.  Recently he has run sessions for senior management at Statoil, Premier Oil, Linklaters, BNP Paribas and Doughty Hanson amongst others.  He has helped them with messaging, presentation performance and pitch winning workshops.

Benjamin will be running the workshop “Honing your business Skills” at GAIM International 2010 on Thursday 17th June at 12.00pm.  Follow Benjamin on Twitter at @BenjaminBallA

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

Hedge Fund Industry Dynamics and Consolidation Trends

May 24, 2020

An Article by Kerry Stirton, Red Mountain Capital Partners.

Kerry Stirton will be speaking at GAIM International 14 - 17 June 2020 in Monaco

Most of the fundamental drivers of growth in the alternative investment sector over the past ten years have largely been maintained, or in some instances accentuated: more strategic choices for allocators, talented investment managers and traders, superior investment performance, somewhat better correlation features, and more aligned incentives. Excessive media attention to the odd renegade fund has not disrupted these core features. Institutional investors have continued to increase their allocations to hedge funds on the back of these attributes, and intend to increase them further in the future. However, alpha-generation and liquidity demands have become more important drivers in many instances.

This said, industry features are changing in significant ways. Conditions will become more challenging for most alternative funds as markets evolve and institutional investors become more demanding. Outperformance will become more difficult to achieve in increasingly competitive markets. Fees will continue to be pressured and will be more performance-based. More distinctive strategies, and more integrated investment skills, will become critical components of success. Firms with tight alignment of incentives between themselves and their investors will fare better. With the demand side having sharpened its game, winners on the supply side now have to be smarter and more principled than ever to attract their share of capital. Read more »

Post Under: Asset Management

Investor Research - Client Concerns & Distribution Strategies

May 19, 2020

An Article by Rodger Smith, Managing Director, Greenwich Associates.

Rodger Smith, will be speaking at GAIM International, 14-17 June 2020 in Monaco

The global financial crisis has brought a series of transformational changes to the hedge fund industry.  In a recent survey conducted by Ernst & Young and my firm, Greenwich Associates, hedge fund managers cited a host of developments that are altering the structure of their industry.  Among these changes were consolidation and a reduction in the number of active hedge funds, new and stricter regulations and movement in fee structures. Also near the top of the list were demands for increased levels of transparency — demands that will ultimately require hedge funds interested in competing for institutional assets to ramp up their investments the often-overlooked function of client service.

Despite the industry’s current state of flux, global demand for hedge fund investments is on the rise among institutions. Institutions around the world have invested between $425 billion and $450 billion in hedge funds, a figure driven by the approximately $240 billion invested in hedge funds by institutions in the United States and $80 billion from institutions in continental Europe.  Although institutions in continental Europe have become more skeptical about hedge fund investments since the start of the crisis, this hesitancy has been more than offset by the continued enthusiasm among institutions in the United Kingdom and the United States, which are in the process of increasing hedge fund allocations beyond pre-crisis levels. Read more »

Global Economic Strategy

May 18, 2020

An Interview with Steve Friedman, Managing Partner, Eos Partners

Steve Friedman, EOS Partners will be speaking at GAIM International 14-17 June 2020 in Monaco

Steven M Friedman has served as a Managing Partner at Eos Partners since its formation in 1994. Eos invests in credit strategies, equities and private equity giving it a unique perspective of the currently challenging markets. In answer to the question, how can the hedge fund industry ensure that it delivers in all markets and conditions, Friedman says that hedge funds need to be flexible, maintain liquidity and anticipate problems by learning from history.

“Since 1998, we have seen that central banks are reluctant to move meaningfully until a full crisis has developed” Friedman says. “We have seen central banks move slowly through a series of crises in sovereign debt, mortgage and bank crises. Central banks can be late in identifying and reacting to problems.”

Friedman believes that hedge funds need to follow the macro economics, and be aware that if they believe a government response is needed it’s likely to come late.  “Hedge funds need to be flexible, nimble and liquid given the cross currents in the modern world” he says.

He believes that this is where hedge funds can outperform long only funds. “As long as hedge funds remain reasonably sized they can remain more flexible than traditional funds whose mandate is to stay invested at all times” he says. “Our mandate is to be flexible. Eventually things will calm down but what happens between then and now is the question.” Read more »

Post Under: Asset Management

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