Editor's view: 29 July 2010
Like Paris in the spring, the lure of the Ucits space is proving a heady experience for many managers. First Europe fell for the charms of these onshore products, now the Americans are joining in a communal swoon.
03/02/2010
Florida Uni looks at the secondary market
The Florida State University, which manages an endowment of $399m, is considering hedge fund purchases in the secondary market, revealed Ralph Alvarez, associate vice president for budget/planning
and financial services.
The move to enter the secondary market is part of a gradual repositioning of the endowments overall investment portfolio, with the long-term aim of investing exclusively in direct hedge fund strategies. A target Florida State is well on the way to achieving.
The endowment, which started investing in hedge funds in 2003 through funds of hedge funds (FoHFs), has slowly been adding direct hedge fund strategies to its portfolio, and will eventually phase out its FoHFs. “The original intention for the FoHFs was to diversify the portfolio. Now we want to be more targeted when it comes to investment style,” said Alvarez.
As of September 2009, Florida State University had $80m in hedge funds, a 20% allocation, across a universe of around 34 managers (two FoHFs). The investment committee is advised on its
investments by Cambridge Associates.
Firms such as Hedgebay, which was founded in 1999, provide a gateway for investors such as pensions and endowments to access
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Comment: Amy B Hirsch
"It is imperative that investors of all types ensure they understand the relationship between the introducing party and the manager"
Investors sit tight on impaired assets
Playing the ‘what if’ game can be fun but, depending on the number of variables in question, it can get a little out of control. Apply this conceit to the hedge fund sector's performance during the financial crisis and the possible permutations become legion.
Hedge fund inflows in Q2
Hedge inflows have slowed as volatile markets made sitting on the sidelines the safest option in Q2. According to figures from HFR, the quarter’s $9.5bn - a 30% drop from Q1’s $14bn – reflected the 'wait and see' policy of many investors as the HFRI Fund Weighted Composite dropped -2.5%. With nerves setting in, recent predictions of a boom of interest in the alpha potential of smaller managers also fell flat, with the lion’s share of money going to large $5bn-plus managers.
Read MoreFunds of hedge funds fall out of favour
A growing number of institutional investors are now opting to invest directly into hedge funds instead of allocating to the space via funds of hedge funds.
Read More
22/09/2010
UK: Ucits IV
This month’s HFMWeek Subscriber Club breakfast will take place on Wednesday 22 September. Join us and…
30/09/2010
US: topic to be confirmed
The next HFMWeek Subscriber Club breakfast will take place on Thursday 30 September. Topic and…
19/07/10
HFM Week US Performance Awards
Following the success of the last year’s HFM US Hedge Fund Performance Awards we...
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