Funds Hub

Money managers under the microscope

USS’s enterprise

Photo

rtr1g12yThe 23 billion-pound Universities Superannuation Scheme (USS) is boldly going where few investors are prepared to go at the moment and upping its allocation to hedge funds.

Despite last year’s record poor performance from the hedge fund industry, Britain’s second-biggest pension fund is sticking with a mission to double its allocations to hedge funds and private equity to 20 percent.

Pension funds were faced with a major problem after 2008 – do you buy or sell hedge funds?

If your equities are down 40 percent and your hedge funds down 20 percent, do you invest more in hedge funds because they performed better?

A timely withdrawal?

Photo

Spanish bank BBVA’s move to close down its alternative investment arms including hedge funds shows just how much things have changed in the industry, even within the past year.

rtr22m3jBBVA said it had “decided to anticipate the possible effects of the current situation of markets and of the alternative investment industry”.

The new wrong

Photo

Most hedge funds agree that the credit crisis has thrown up some interesting assets at bargain-basement prices, particularly in credit markets.

rtr23v8sThe problem? When you have to report net asset value performance to jittery investors and prices of these cheap assets are getting even cheaper, when do you buy?

Odey spies ‘the death of safety’

Photo

By Simon Falush

 

So you thought safe-haven pharmaceuticals and food producers were a safe place to shelter your assets?

 

rtx923rThink again, says Crispin Odey, the well-known hedge fund manager who thrives on a contrarian approach to equity investing. He tells Reuters that defensives could be the next target for short sellers.

Blowin’ in the wind

Photo

rtr22twuThe timing of the Alternative Investment Management Association’s hedge fund disclosure initiative indicates just how strong the winds of change are blowing in hedge fund land.

Coming just a day after ECB President Jean-Claude Trichet called the credit crisis “a loud and clear call” for extending hedge fund regulation, the move shows the hedge fund industry feels it must be more active in deciding the future shape of regulation.

A loud and clear call

Photo

rtr1y8m4It may not have been a massive surprise, but ECB President Jean-Claude Trichet had an unwelcome message for hedge fund managers today.

The current crisis is, apparently, “a loud and clear call” to roll out regulation to all important market players, “notably hedge funds and credit rating agencies”.

Every Cloud…

Photo

Creative Destruction?As politicians and regulators worldwide prepare a new blueprint to marshall the hedge fund industry, the organisers of the GAIM industry conference release the early agenda for their annual Monaco pow wow.

Unsurprisingly, the June 16-18 summit takes the theme: Transformation In A New World Order. And even less surprisingly, several sessions are set to ponder how to best snag a new breed of circumspect investors, and how to adapt to a new regulatory environment.

Insurance policy

Photo

Shorting UK banks, it seems, is so last year.

Having profited from the implosion of the sector in 2008, many funds believe prices have fallen far enough, and in some cases are actually looking good value.

rtrp8722Outspoken star fund manager Crispin Odey this week revealed he’s now buying UK banks, having made money shorting them last year.

Saving Hendry? Thanks but no thanks, says Hugh

Photo

rtr1z9ud1It was always unlikely that a letter of advice was going to change the mind of maverick hedge fund manager Hugh Hendry.

 

And in his latest letter to investors, Hendry has smartly rebuffed any attempt to ‘save’ him from his bond investments.

Mutual funds gaining ground on hedge funds?

Photo

rtr9urwHedge funds have gained a increasing share of the investment pie in recent years but the trend could could be reversing, judging by separate comments made by UBS and Deutsche Bank on Tuesday.

Timothy Bell, global head of hedge funds advisory at UBS Wealth Management, said hedge fund assets could fall further to $1.2 trillion this quarter from $1.4 trillion at the end of 2008 and $1.93 trillion at their peak in mid-2008.

  •