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.
04/03/2010
New FoHF model could be put to the test in 2010
We’ve heard this before, but 2010 really could be a make-or-break year for the fund of hedge funds (FoHF) industry.
Already, the business model has changed dramatically from what it was 18 months ago; now a provider of liquidity and bespoke mandates to institutions, rather than a straightforward comingled product provider. In this way, it’s becoming more difficult to gauge the strategy's success based solely on returns, since this doesn’t account for individual institutional mandates, which make up more and more of the industry, particularly for the larger FoHFs.
Even so, with around 1,500 FoHFs posting returns every month, there’s enough to work with. January’s returns were a little less than flat, with the strongest from the fixed income FoHF managed by Permal Fixed Income Holdings, up more than 1% in January. Of the smaller FoHFs the Old Mutual Emerging Managers Fund hit 3.58%; one of two strong-performing Old Mutual FoHFs in January, the other, Old Mutual Absolute Return Fund, was up 3.1%
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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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