Hedgeweek Awards 2013 - Hedge Funds - Hedge Funds News

2y ago
1.54 MB
28 Pages
Last View : 7d ago
Last Download : 5m ago
Upload by : Maxton Kershaw

March 2013HedgeweekAwards 2013

LE ADING THE WAYUNRIVALLED IN CHOICE, QUALITY AND EXPERIENCELYXOR managed accOunt PLatfORm, innOvating since 1998With 11bn assets under management*, only Lyxor’s Managed Account Platform gives access to over 100 managers, selectedamong the best in the industry. With the addition of weekly liquidity**, unrivalled transparency and sophisticated monitoringfeatures, you can invest with confidence. We offer investors much more than a platform, we offer our unrivalled experience.think managed accounts, think Lyxor.HedgeWeek Best managed account Platform 2012 HFMWeek most innovative managed account Platform 2012 The Hedge Fund Journalthe Leading managed account Platform 2012 Hedge Funds Review #1 managed account Platform from Hedge fund/foHf viewpoint dec 2011For more information visit www.lyxor.com or email contact@lyxor.com* As at 31st December 2012.** 95% of the funds on Lyxor MAP offer weekly liquidity.This material is not intended for use by or targeted at retail customers. It is neither an offer, nor a solicitation, advice or recommendation for the purchase or sale of any securities, financialinstruments or investment solutions in any jurisdiction, including the United States, or to enter into any transaction. Securities or financial instruments may not be offered or sold in anyjurisdiction, including the United States, absent registration or an exemption from registration under applicable regulations. This material is issued by Lyxor Asset Management S.A.,17 cours Valmy, 92987 Paris La Defense. Lyxor Asset Management S.A. is a firm authorised by the French Autorité des Marchés Financiers under the number GP98019.

ContentsAWARDS 201304 Hedgeweek Global Awards2013 results17 IMQubator05 Winners focus on goodgovernance and consistent returns18 Deutsche Börse GroupBy James Williams20 Anchin, Block & Anchin LLPBest Hedge Fund Seeding Platform06 Mendon Capital AdvisorsBest European Trading VenueBest North American Accounting FirmBest Equity Long/Short Manager21 Kinetic Partners07 Winton Capital ManagementBest European Regulatory Advisory FirmBest Managed Futures/CTA22 Walek & Associates08 Dexia Asset ManagementBest North American Public Relations FirmBest Fixed Income Manager09 Hedge Fund Research23 Tannenbaum Helpern Syracuse& Hirschtritt LLPBest Index ProviderBest North American Law Firm10 Meridian Fund Services25 Peregrine CommunicationsBest Offshore Hedge Fund AdministratorBest European Public Relations Firm14 Lyxor Asset Management26 Agecroft Partners LLCBest Managed Accounts PlatformBest Third-Party Marketing Firm15 Deutsche Bank27 Lockton Companies LLPBest Asian Prime BrokerBest Global Insurance Provider16 NewedgeBest European Prime BrokerPublisherEditor: James Williams, james.williams@globalfundmedia.comSales Managers: Simon Broch, simon.broch@globalfundmedia.com;Malcolm Dunn, malcolm.dunn@globalfundmedia.comHead of Events: Katie Gopal, katie.gopal@globalfundmedia.comChief Operating Officer: Oliver Bradley, oliver.bradley@globalfundmedia.comChairman & Publisher: Sunil Gopalan, sunil.gopalan@globalfundmedia.comGraphic Design: Siobhan Brownlow, siobhan.brownlow@globalfundmedia.comPhotographs: William ScottPublished by: GFM Ltd, 1st Floor, Liberation Station, St Helier, Jersey JE2 3AS,Channel Islands Tel: 44 (0)1534 719780Website: www.globalfundmedia.com Copyright 2013 GFM Ltd. All rights reserved. No part of this publication maybe reproduced, stored in a retrieval system, or transmitted, in any form or by anymeans, electronic, mechanical, photocopying, recording or otherwise, without theprior permission of the publisher.Hedgeweek Awards Special Report Mar 2013www.hedgeweek.com 3

r e s u lt sAWARDS 2013The winnersBest Long/Short Fund ManagerMendon Capital AdvisorsBest Market Neutral FundManagerInsight Investment ManagementBest Relative Value FundManagerAxa Investment ManagersBest Credit Fund ManagerMKP CapitalBest Distressed SecuritiesManagerSwiss Capital Alternative InvestmentsAG, ZurichBest Managed Futures CTAWinton CapitalBest Fixed Income Fund ManagerDexia Asset ManagementBest Absolute Return FundManagerBernheim, Dreyfus & CoBest Global Macro FundManagerThe Cambridge StrategyBest Event Driven Fund ManagerCube Capital LLPBest UCITS-Compliant ProductDeutsche Bank X MarketsBest Diversified Fund of HedgeFunds ManagerLiongate Capital ManagementBest Specialist Fund of HedgeFunds ManagerFinancial Risk Management (FRM)Best Index ProviderHedge Fund ResearchBest North American HedgeFund AdministratorSS&C GlobeOpBest Asian Hedge FundAdministratorCitiBest European Hedge FundAdministratorMaples Fund ServicesBest Offshore Hedge FundAdministratorMeridian Global Fund Services GroupBest North America PrimeBrokerPershing Prime ServicesBest European Prime BrokerNewedgeBest Asia Prime BrokerDeutsche BankBest Managed AccountsPlatformLyxor Asset ManagementBest UCITS PlatformAlpha UCITSBest Hedge Fund SeedingPlatformIMQubatorBest Risk Management SoftwarePerTrac RiskPlusBest Fund Accounting &Reporting SystemTradarBest Managed AccountsTechnologyEIM LumXBest European Trading VenueDeutsche BourseHedgeweek Awards Special Report Mar 2013Best North American TradingVenueNYSEBest Asian Trading VenueTKSEBest North American AccountingFirmAnchin, Block & Anchin LLPBest European Accounting FirmDeloitteBest North American RegulatoryAdvisory FirmIMSBest European RegulatoryAdvisory FirmKinetic PartnersBest Offshore RegulatoryAdvisory FirmOgierBest North American PublicRelations FirmWalek & AssociatesBest European Public RelationsFirmPeregrine CommunicationsBest North American Law FirmTannenbaum Helpern Syracuse &Hirschtritt LLPBest European Law FirmSimmons & SimmonsBest Offshore Law FirmWalkersBest Third Party Marketing FirmAgecroft Partners LLCBest Global Insurance ProviderLockton Companies LLPwww.hedgeweek.com 4

T h e h e d g e f u n d i n d u s t r y t o d ayWinners focus ongood governance andconsistent returnsBy James WilliamsThe winners of hedgeweek’s GlobalAwards 2013 gathered at an awardspresentation lunch sponsored by Lyxor AssetManagement in London’s Mayfair earlierthis month.All agreed that last year was far from awatershed for the hedge fund industry. Somemanagers pointed to the fact that averagereturns of 6.2 per cent (according to theHFRI index) did nothing more than paperover the cracks of 2011, when the averagehedge fund lost some 5 per cent, but werean institutional investor to take such asimplistic view, they would have missed outon countless compelling opportunities at thestrategy level.“On Lyxor’s Managed Account Platformfor instance 11 out of 14 investable strategyindices were in positive territory. A handfulposting double digits returns,” commentsPhilippe de Beaupuy, Head of MAPHedgeweek Awards Special Report Mar 2013(Managed Account Platform) UK, Lyxor AssetManagement, who delivered the introductoryaddress at the Awards.As it happens, institutions continued toallocate to such an extent that industry-wideassets topped USD2.25trillion and total netinflows for 2012 were USD34.4billion.Sunil Gopalan, hedgeweek’s Publishersays, “What this tells us, in no uncertainterms, is that the face of the industry hasundergone a facelift. No longer dominated byHNW individuals, this is a far more grownup market where sophisticated institutionsallocate for the long-term. Managers shouldtake reassurance from this. The onlydownside, potentially, is that we will continueto see bifurcation, whereby large managersnet the majority of new assets.”“In a lower return environment, thedistribution of wealth between investors andmanagers is increasingly challenged. Bigwww.hedgeweek.com 511

M e n d o n c a p i ta l a d v i s o r sMendon Capital AdvisorsBest Equity Long/Short ManagerMendon Capital Advisors is based inRochester, New York. Founded in 1996 byAnton Schutz, the fund employs a long/shortequity strategy with an event-driven slant,and focuses primarily on the US financialservices sector.Since inception, the fund has managedto generate annualised returns of 14.20 percent, with an annualised risk-free rate of 0.10per cent and a Sharpe Ratio of 4.00 (throughJanuary 2013).The long book typically holds between 40and 60 positions, while the short book holdsbetween 15 and 30 positions.Schutz spent 10 years at ChaseManhattan Bank before setting up Mendon.This, he says, gave him a deep strategicinsight into the operational ways that banksget managed.“The reason I chose to start this fundwas so I could focus on the consolidationof US banking. It’s already gone through atremendous wave of consolidation but thereare still 7,000 banks in the US,” notes Schutz.Indeed, while the strategy is able to pursueopportunities across the financial servicessector, it’s really banks and thrifts thatprovide the main focus.The fund’s objectives are essentiallyto exploit the fragmentation and ongoingconsolidation trends in the financial servicessector. This is achieved by focusing onAnton Schutz, Founder,Mendon Capital AdvisorsMendon Capital’sJim Hutchinson (right)receives the award fromHedgeweek’s Simon BrochHedgeweek Awards Special Report Mar 2013small-cap companies, who are likely tobecome the target of M&A activity.“We still do multi-cap but my bigger winstend to come from the smaller names whereI really have an edge; I understand theirfranchise, and I have a good idea of whowould likely buy them,” says Schutz, addingthat the team currently monitors between 600and 800 names.Schutz is a bottom-up stock picker andphysically shorts stocks although in periodsof low volatility these might be substitutedwith individual put options. When trying toidentify shorts, Schutz says that there anumber of factors: firstly, the credit qualityof the institution and subsequent loancomposition. Secondly, where are they in theM&A space? “Are they a seller or a buyer,and if so are they a stupid buyer? Certainly,undisciplined acquirers are a key factor toconsider when shorting.One of Mendon Capital’s strengths is theability to build positions on the long side wayin advance of any expected takeover deal. Thisis where Schutz’s expertise comes into play.“We meet with management teams literallyhundreds of times a year. We know the insand outs of these companies. We don’t justknow the numbers, we know the people.“I spoke with a big bank recently andasked whether the CEO ever envisagedselling. His response was: ‘All it takes is onebad visit to the doctor’.”Schutz says that they had seven M&Adeals in the portfolio last year, which helpedperformance: “We’ve already got off to agreat start this year and we expect to see alot more M&A deal flow. I think in the nextfive years we’re going to see the numberof US banks fall from 7,000 to around 4- to5,000 banks.”On winning the hedgeweek award, Schutzsays: “We’re excited to get recognition forthe fund. After having been through theinsanity of the markets over the last fewyears we’re pleased not only to still be inbusiness, but to have received this award.It’s a great honour.” nwww.hedgeweek.com 6

W i n t o n C a p i ta l m a n a g e m e n tWinton CapitalManagementBest Managed Futures/CTAIn 1997, David Harding and twoemployees established Winton withapproximately USD2million. Today,that figure stands at an incredibleUSD25.75billion. Before Winton,Harding was the H in AHL. OnceAHL had been assumed into ManGroup by 1994, Harding started ManResearch before leaving in 1996.Winton Capital is now Europe’s largestCTA manager and the world’s fifthlargest hedge fund firm.The firm’s flagship fund is theWinton Futures Fund. The portfoliois split roughly 20 per cent inequities, 20 per cent in fixed income, 20 percent in currencies, with the remainder incommodities and interest rates (7 per cent).It has a Sharpe ratio of 0.80.“We have approximately USD10billion inthe fund, whilst managed accounts totalaround USD15.3billion,” says Robin Eggar,Head of Communications and Public Affairs,confirming that WFF attracted USD200millionin net inflows for 2012.Last year was a challenge for all CTAfunds, and Winton was no exception, endingthe year down a modest 3.5 per cent. Thataside, WFF has generated positive returns in13 of its 15 years and annualised returns of15.76 per cent.Part of the reason for Winton’s continuedsuccess over the years is the fact that itoffers an attractive 1:20 fee structure: mostCTAs charge a 2 per cent managementfee. Another key reason was the hiring ofAnthony Daniell as Director of Sales andMarketing (he became CEO in 2010 and hasbecome Chairman as of 1 January 2013).Daniell helped develop a sales teamthat has marketed Winton effectively toinstitutional investors and pension funds allaround the world over the past 10 years. TheRobin Eggar, Head ofCommunications and PublicAffairs receives WintonCapital’s awardHedgeweek Awards Special Report Mar 2013US is now Winton’s biggest market atabout 40 per cent.Within Winton Capital, situated ina South Kensington Mews, the firm’sphilosophy mirrors Harding’s academicbackground; he studied theoreticalphysics at Cambridge University.Winton’s approach is to apply rigorousquantitative models in a scientificbased approach to trading the markets.Twice a year, Harding makes apoint of handing out a prize for theresearch he likes the most. Thisillustrates clearly the collegiateenvironment in which Winton’s staffwork and strive to find new trading ideas.“We have 280 employees, of whomalmost 120 are actively engaged in research.While all quant funds have researchers, itis our USP. We employ mathematicians,astrophysicists, engineers almost all ofwhom have post graduate degrees.“We prefer investors to be investing in –rather than just the CTA industry or trendfollowing – the idea of scientific researchapplied to financial markets,” explains Eggar.Over the past five years Winton has beenheavily researching equity markets and theWFF now trades individual cash equities inaddition to the more traditional CTA fare ofstock indexes.Winton actually takes quite a consideredapproach to exploiting market inefficiencies.It doesn’t change positions in the fund toooften, preferring to wait for meaningful longterm trends to emerge. That explains whyGBP30million a year is spent on research.Over the long-term, Winton believes it has a“52 to 53 per cent edge” over the market butis striving to improve that.On winning the hedgeweek award, Eggarcomments: “it’s always nice to be recognisedby one’s peers and the industry.” nwww.hedgeweek.com 7

Dexia Asset ManagementDexia AssetManagementBest Fixed Income ManagerThe UCITS IV-compliant Dexia Long ShortCredit fund launched in October 2009. Thefund builds its long and short positions byscreening for investment opportunities inthe broad investment grade and high yieldcorporate bond markets of Europe and theUS. The minimum high yield rating for netlong credit exposure is B-.Since inception, the fund has returned11.56 per cent flat compared to 1.64 per centfor Eonia (as at Feb 2012). It has a historicSharpe Ratio of 2.82. Last year, it delivered3.98 per cent, and was able to keep volatilityto within 60 to 70 basis points.The fund offers daily liquidity, andsubsequently trades only the most liquidsecurities from the most developed markets.In terms of strategy, the fund looks to takeprofit on inefficiencies between investmentgrade and high yield markets. But rather thanpursue a pure arbitrage strategy, it actuallycombines two.As Patrick Zeenni, Portfolio Manager,explains: “It’s a very opportunistic fund withquite a high turnover and is composedof two different strategy buckets: relativevalue (arbitrage) strategies, and directionalstrategies where we aim to capture markettrends.“When there’s dispersion in the market,relative value trades work well, andwhen there is directionality in the market,directional strategies work well by going longor short and taking profits where possible.This certainly helped the fund’s performancelast year.“The two strategy buckets on average areweighted roughly equally within the portfolio,in terms of gross exposure and contributionto performance.”Containers and Packaging, and TMT arethe preferred net sector exposures in thefund, with 5.8 per cent and 4.8 per centrespectively. The main credit exposures onPatrick Zeenni, PortfolioManager, Dexia AssetManagementHedgeweek Awards Special Report Mar 2013the long side are in Rexam, Kinross Goldand UPC Germany, with key short positionsin Omnicom and British Telecom.Towards the end of 2012, the directionalpart of the strategy performed strongly,thanks to long exposure to peripheralutilities, corporate names in Spain andItaly. Overall, last year was a case of beinglong the periphery, short core Europe; theopposite, says Zeenni, of 2011.“On the long/short side, money was madethanks to refinancing by issuers taking intoaccount the low rate environment. A lot ofissuers bought back their short maturity debtand issued longer maturity debt. We werepositioned to capitalise on this and madesome nice profits on the long side,” confirmsZeenni. What also worked well wereselective long/shorts as well as negativebasis strategies.Another issue that might come intoplay this year is M&A activity, with Zeennisuggesting that strong investment gradenames looking to grow could buy highyield names, presenting another source ofopportunities for long short strategies.“Ultimately, we combine efficient markettiming with bottom-up fundamental bondpicking, and use dynamic tail risk hedgingto dampen volatility. That’s one of the keypoints of the fund. We always want ourdirectional bucket to be partially hedgedthrough options.“Currently around 50 per cent of thefund’s gross exposure is in the relative valuebucket. The idea is to shift gross exposurefurther into relative value as there’s lessdirectionality in the market than last year.”On winning the hedgeweek award, Zeennicomments: ““This award is testimony to theunique positioning we have built for DexiaLong Short Credit with our team: deliveringconsistent performance with controlledvolatility.” nwww.hedgeweek.com 8

Hedge Fund ResearchHedge FundResearchBest Index ProviderKenneth Heinz is President of Chicagobased Hedge Fund Research. Since it wasestablished in 1992, HFR has become thestandard bearer for indexation and cuttingedge analysis of hedge funds, from strategyperformance through to capital inflows andbroad market dynamics.Its HFR Database provides fund-leveldetail on historical performance and hasin addition developed a sophisticated fundclassification system. This enables users toperform benchmarking and determine relativefund performance within specific sectors andstrategies.Currently, the firm produces over 100indices. Its flagship HFRI Fund WeightedComposite Index is the most widely usedhedge fund benchmark. In addition to theHFRI and HFRX indices, the firm unveiledthis year a new suite of indices to track theperformance of UCITS hedge funds.The HFRU Indices cover four substrategies that track the daily performance ofequity, event driven, macro and relative valuearbitrage UCITS-compliant hedge funds.“We’re really excited about it. Sinceit’s been live I don’t think there’s a majorEuropean asset manager that hasn’t beenin touch with us about these indices.We think it will be a powerful and robustcharacterisation of the performanceof UCITS-compliant hedge funds,”comments Heinz.Additional sub-indices are due to launchlater this year, but even at this early stagethe HFRU index suite is already tracking inthe region of 700 managers.Heinz and his team have been workingon the project for quite some time. “Wefirst conceptualised HFRU about 18 monthsago. It’s the culmination of a long, detailedresearch process.“The reason why the HFRU Index isimportant to us is because it enablesKenneth Heinz, President,Hedge Fund ResearchHedgeweek Awards Special Report Mar 2013investors to draw relevant comparisonsbetween the HFRI Index and the HFRUIndex, based on a common language. Thereare important elements of risk that need tobe taken into consideration when evaluatingperformance, and I think the indices that wenow offer can empower investors to makethose important characterisations.”The fact that the HFRU Index needs toprovide daily, as well as weekly and monthlyperformance figures was, says Heinz,both an operational challenge but also astrong benefit.For 20-plus years, HFR has beenconceptualising the important componentsof the hedge fund industry, which is evidentin the success of its index construction andresearch. But what differentiates the firm isthat it thinks about all constituent users, fromasset allocators to service providers, familyoffices, consultants, fund of funds.Explains Heinz: “All of those differentconstituents are using the HFR research andindices to create a common language thatforms a backdrop for the environment they’retransacting in. Are capital flows increasing,decreasing, are certain sectors doing betterthan others? Why did this fund do betterthan the index, and not this fund? These areall relevant questions that form the backdropof a conversation when talking about whichfund to invest in (or not).“HFR operates in many respects as theofficial score keeper for the hedge fundindustry. We provide a common point ofreference that everyone is using, and that’swhat makes our family of indices andresearch so powerful.”On winning the hedgeweek award, Heinzadds: “HFR is both appreciative to thereaders of Hedgeweek and thankful to thewriters and editors for the distinguishedhonor and recognition the Awardconveys.” nwww.hedgeweek.com 9

Meridian Fund ServicesMeridian FundServicesBest Offshore Hedge Fund AdministratorIndependently owned Meridian FundServices administers funds across allhedge fund structures and private equityfunds. At present, Meridian administratesapproximately USD14billion in assets. Itservices 85 clients across 216 funds, whichcollectively have more than 5,650 separateinvestors.According to CEO Tom Davis, with boththe US and Europe introducing significantregulation, the offshore market finds itself“playing the role of facilitator. We’re studyingwhat role an offshore jurisdiction can playin this new regulatory environment so thatinvestible assets in one jurisdiction can tapinto the investment expertise in another.”“Prior to 2008, we would first try to getthe offshore business of a fund group andby doing a good job, then get their onshorebusiness. Now we’re doing the completeopposite: we’re looking to get the onshorebusiness through our New York office, andthen assist our client with their offshoreoffering. We then help them establish theirown fund offshore, or going forward theycan choose to join our new platform to givethem time to grow and build a track record,”says Davis.The platform that Davis refers to is anew construct, designed specifically tohelp support small emerging managers.Even though the industry is becoming moreinstitutionalised, Meridian, as a mid-sizedadministrator, has an important role to playgetting talent to market.Explains Davis: “ We feel we’ve come upwith a great product that is going to helplower the barriers of entry for start-ups. Itshould go live in the next couple of months.I don’t like the word incubator but essentiallyit’ll be a platform for new managers to builda track record and then launch a full-blownfund structure further down the line.”Tom Davis, CEO, Meridian FundServicesHedgeweek Awards Special Report Mar 2013As well as supporting new managers,Meridian has long been a champion of goodgovernance. In that sense, it has been onestep ahead of its competitors, given the highpriority governance now has today.“What’s different now is that institutionalinvestors are focused on return “of” capitalas well as return “on” capital. So fundgovernance is becoming increasinglyimportant. We have beefed up our existinggovernance group, and I’m pleased to reportthat the management groups that we’redealing with recognise the importance ofgood governance.”This is happening both onshore as wellas offshore. The governance of US onshorefunds is performed by a managing member ifit’s an LLC, or a general partner if it’s an LPstructure; either way it’s an entity controlledby the hedge fund manager.“What we’re recommending to our clientsis that they should appoint an advisory boardfor their onshore funds that has similarresponsibilities to a board of directors ofoffshore funds. To achieve this, we havedeveloped a prototype of powers andindemnities that can be formally transferredand/or bestowed by the general partner ormanaging member to the advisory board.We’ve been working with clients to helpachieve this independent oversight role thatinstitutional investors are increasingly lookingfor, and regulators may start to demand,”adds Davis.On winning the hedgeweek award, Daviscomments: “I am delighted that Meridianreceived this award. I’m fortunate to havea dedicated global team who share myvision on the importance of client interfaceand attention to hands-on detail wheretechnology is an enhancement and not areplacement for personal service to ourclients.” nwww.hedgeweek.com 10

T h e h e d g e f u n d i n d u s t r y t o d ay5is beautiful, very often leaving a number oftalented managers in the street struggling toattract initial capital to launch their strategy,”adds Philippe de Beaupuy.Last year, according to Hedge FundResearch, fixed income-based relative valuearbitrage became the largest strategy area,by assets: total capital inflows for 2012were USD41.4billion, taking total assets inthe strategy to USD609billion. This is hardlysurprising given that the HFRI Relative ValueIndex ended the year up 10.5 per cent.What is more surprising is that thestrategy overtook equity-based strategies forthe first time in more than 20 years. Investorswithdrew USD10.4billion in equity hedgefunds last year, leaving total strategy assetsat USD598billion.For the first time in at least 18 months,there are signs that the risk on/risk offenvironment – which has plagued stockpickers – has diminished. Equity marketshave recovered strongly in recent times, andYTD the S&P 500 Index is already up 9.34per cent. Suddenly, equities have regained adegree of lustre.As Duncan Crawford, co-global head,Newedge Alternative Investment Solutions –winner of this year’s Best European PrimeBroker – comments: “The markets are likea coiled-up spring; they are ready to trend,they need trend, and I think they will trend.”European institutions are favouring USequities, and for firms like Mendon CapitalAdvisors – winners of this year’s Best EquityHedgeweek Awards Special Report Mar 2013Long/Short Manager – the outlook for 2013looks promising.Mendon focuses its strategy on the USfinancial services sector. Its approach isboth bottom-up stock picking and scanningthe universe of 7,000 US banks for eventdriven positional plays, which founder AntonSchutz looks to build way in advance ofdeals being completed (or not). “We meetwith management teams literally hundredsof times a year so we don’t just know thenumbers, we know the people. We’ve got offto a great start this year and we expect tosee a lot more M&A deal flow in 2013.“For me, a perfect M&A deal is one whereeverybody’s stock goes up not just the targetstock, and we’re starting to see that in sometransactions. I think in the next five yearswe’re going to see the number of US banksfall from 7,000 to around 4- to 5,000 banks;that’s a lot of banks that might disappear.So there will be plenty of opportunities forour fund.”Fixed income was, as mentioned, thetop strategy for 2012. But with US 30-yeartreasuries at historic lows, and pressurefor investors to find attractive yields in alow-rate environment, strategies that candeliver either through arbitrage opportunities,or through superlative bond picking in thecorporate high yield space, are worth theirweight in gold.Some believe we will see the GreatRotation this year from fixed income intoequities. Others believe investors will takewww.hedgeweek.com 11

T h e h e d g e f u n d i n d u s t r y t o d ayan intermediate step, from investment gradeinto high yield; in particular short durationhigh yield.Dexia Asset Management’s Long/ShortCredit Fund (Best Long/Short Credit Manager)is designed precisely to capitalise on marketfluctuations by trading on inefficienciesbetween IG and high yield bonds. It does soby leveraging two strategies: relative valueand directional, the former being best suitedto dispersion in the market, the latter whendirectionality builds in the market.“Directional strategies work well by goinglong and short and taking profits wherepossible. This certainly helped the fund’sperformance last year. Right now, we areholding short-duration IG bonds. AroundHedgeweek Awards Special Report Mar 201312 per cent of the book is holding selectednames with less than one-year maturity.“The idea is for the gross exposure ofour relative value bucket to grow versus thegross exposure of our directional bucket.Currently, around 50 per cent of grossexposure is in the relative value bucketand the idea is to build that exposure asthere’s less directionality in the marketthan last year,” explains Portfolio Manager,Patrick Zeenni.Investor preferences have moved toembrace high quality strategies offeringtransparency, liquidity, tactical flexibility,strategic innovation and consistentperformance gains according to KennethHeinz, President of Hedge Fund Research,www.hedgeweek.com 1219

LY XORThe pOweR TO peRfORmin anY maRke TDESIGN Your INvEStmENt SoLutIoNS WItHA LEADING SPECIALISED ASSEt mANAGErAlternAtive investments etFs & indexing multi-Asset investments structured investmentsLyxor asset management, a subsidiary of Societe Generale Group, wasfounded in 1998.Our investment professionals deliver investment and advisory solutions forinstitutional investors in all asset classes.with over 600 specialists worldwide, Lyxor manages USD 99.4 Bn* of assetsacross four key areas: alternative investments, eTfs & indexing, multi-assetinvestments and Structured i

Best Credit Fund Manager MKP Capital Best Distressed Securities Manager Swiss Capital Alternative Investments AG, Zurich Best Managed Futures CTA Winton Capital . largest hedge fund firm. The firm’s flagship fund is the Winton Futures Fun

Related Documents:

Brazilian pension funds could not invest in funds that employed leverage or intra-day trading, they can now allocate capital to funds that trade in derivatives or to funds of hedge funds, albeit within fixed limits. The number of private clients investing in alternatives, especially funds of hedge funds, is also increasing. In the past such .

2 THE CONCEPT OF HEDGE FUNDS 6 3 TYPOLOGY OF HEDGE FUNDS 8 4 CHARACTERISTICS OF THE HEDGE FUND INDUSTRY 11 4.1 Location of hedge funds and their managers 11 4.2 Incentive structure and failure rates 17 4.3 Parties involved 18 4.4 Investors 19 4.5 Fund size 20 5 RECENT EVOLUTION OF THE HEDGE FUND BUSINESS 22 6 FINANCIAL STABILITY IMPLICATIONS 25

Section I Hedge Funds. 9 2. Introduction to Hedge Funds 11 3. Establishing a Hedge Fund Investment Program 37 4. Selecting a Hedge Fund Manager 57 5. Due Diligence for Hedge Fund Managers 69 6. Risk Management Part 1: Hedge Fund Return Distributions 93 7. Risk Management Part II: Additional Hedge Fund Risks

How hedge fund investors and consultants evaluate and choose funds. % of respondents Advent surveyed hedge fund investors and consultants in early 2013 on how they evaluate and choose hedge funds. A total of 152 responses came from investment advisors, funds of hedge funds, family of

A. Number and size of hedge funds Owing in part to the lack of a consensus view of what constitutes a hedge fund, coupled with the fact that many hedge funds have adopted a low profile, the exact number of hedge funds in existence is not known with certainty. Most estimates range upward from around 2 500 or so funds.

environment for Hedge fund managers and investors. For the first time in many years, short selling was viable (and profitable) in 2018 and we would expect the same in 2019 as the Great Separation (good from bad) continues. Hedge Funds perform well historically during periods of Central Bank withdrawal of liquidity and the planned

“hedgegate Swiss Funds of Hedge Funds Index” can absorb most of the biases and therefore leads to a quite representative performance for the Swiss fund of hedge funds market. Keywords: fund of hedge funds, Swiss registration, backfill bias, survivorship bias, fund of he

an accounting policy. In making that judgment, management considers, first the requirement of other IFRS standards dealing with similar issues, and the concepts in the IASB’s framework. It also may consider the accounting standards of other standard-setting bodies. International Financial Reporting Standards Australian Accounting Standards