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.
17/02/2010
PBS Capital creates first separate account
PBS Capital Management, a Texas-based healthcare hedge fund started by Highland Capital veterans, has created its first separate account for a Dallas family office.
According to an investor letter, the family office allocated $10m to the account which will be dedicated to investing in pharmaceutical royalties, an asset class the hedge fund structure is also expected to employ.
Last month the PBS Capital Fund returned 1.2%.
At the same time, the Health Care Select Sector SPDR increased 0.7%, the S&P 500 declined 3.7%, and the Russell 2000 declined 3.7%.
PBS invested around 22% (gross) in biotechs, by far the largest allocation for the manager, beating facility investments, which accounted for 17% at the beginning of February.
HFMWeek previously reported that PBS modified its fee structure after investors were unclear about a revenue-sharing agreement the fund had instituted. With the revision, the fund lowered its management fee to 1.25% and has an incentive fee of 20% of profits over a 5% hurdle.
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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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