The institutional outlook
A recent survey of institutional hedge fund allocators gives insight into current and future allocations
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24/02/2010
Editor's view: 25 February 2010
As those who have followed this magazine’s AIFM ‘Directive Action’ campaign will know, European politics is not a linear process. The twisting path of the draft directive –
often multiplied by the fact that the document exists in a varied triplicate at Parliament, Commission and Presidency levels – has begun to resemble the dizzying curves of the European
Parliament’s Babel-style central tower.
With the European Parliament edging closer to ratifying its own preferred version of the draft, we can expect a little more clarity soon. Yet the myriad concerns that the industry still harbours, particularly about the final document’s protectionist tenets, remain.
As HFMWeek’s campaign continues to make clear, progress can still be made, but these are definitely nervous times. It’s an enervated emotional state that became palpable over the last
few weeks when the hedge fund sector was dragged into the latest EU debt crisis. With the Greek economy looking shaky – quickly followed by the Spanish and Portuguese – the industry
worked hard to persuade the public, and more importantly, EU regulators, that it was in no way responsible.
In fact, hedge funds have become oddly sensitive to criticism. Where silence would have once reigned, a few went out on a limb. Brevan Howard and Moore both wrote to investors assuring them that
they were not trading in Greek debt. Others have even backed out of Euro currency trades, worried that they would be branded heartless speculators as Mediterranean economies looked poised to go
up in smoke.
Now that the crisis has eased – although Greece still smoulders – as EU powers ponder a bailout, it’s worth noting how blameless the sector was in the first place. According to Barclays, investors in Greek debt are overwhelmingly European. And with only 5% of investment in this sector coming from outside the Eurozone, this strongly suggests that it is European banks, rather than London-based hedge funds, who are the big players here. A fact that is, unfortunately, likely to be lost on EU regulators.
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What's in a name? Glasnost Hedge Fund
Phillippe Gougenheim, formerly of Man Group and Unigestion, is busy plotting his next hedge fund move, Reuters reported this week. The industry veteran plans to launch a $50m fund in June that can shield investors from movements caused by the influence of politicians on markets, with a particular focus on the eurozone. “My idea is to be everything that hedge funds are not: liquid, transparent, and with a focus on capital protection,” Gougenheim told the newswire.
Hence, in theory, the name. Glasnost, a Russian word, translates roughly as openness and was used to describe Mikhail Gorbachev’s policy of transparency and freedom of information towards the end of the Soviet Union. The strategy was designed to reduce corruption, which was rife at the time in the Soviet government and Communist party.
Gougenheim’s version of transparency will aim, instead, to generate interest among investors while making solid returns too. The fund will offer weekly liquidity with three days’ notice, and will disclose all positions to investors on a monthly basis. It is due to be launched in June and domiciled in Cayman. Parent company Gougenheim Investments is reportedly hiring a COO, portfolio manager and marketing staff.
HSBC Holdings to close New York hedge fund administration group
HSBC Holdings, the New York-based hedge fund administration division of HSBC Securities, is to close its New York office and transfer its operations to Dublin, resulting in the loss of 200 jobs, according to reports Friday.
HFMWeek Daily Snapshot - 3 February
Today: Lansdowne flagship returns 5.7% in January; Cohen moves closer to buying New York Mets; HSBC admin unit in US to close; Kyle urges pension to stick with gold hedge; and more...
BREAKING NEWS: Boyer Allan to shut
Boyer Allan Investment Management, one of London’s longest-running hedge fund managers, is to shut, HFMWeek can confirm.
Investor demand for CTAs is on the rise, says Agecroft Partners
Agecroft Partners is seeing widespread demand from institutional investors for Commodity Trading Advisors (CTAs), which is a dramatic change from the historical reluctance of many institutional investors and their consultants to allocate to this strategy.
Read More29/02/2012
UK: Opera Standards: The Challenge and Opportunities of Standardising Hedge Fund Risk Reporting
Join us and our panel of experts for HFMWeek's Subscribers' Club February's UK breakfast briefing…
29/02/2012
US: Endowments and Foundations in Hedge Funds
The next US HFMWeek Subscribers' Club breakfast, will take place on Wednesday February 29. Join…
02/02/2011
European Hedge Fund Services Awards 2012
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
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