Summit Notebook

Exclusive outtakes from industry leaders

Exotic trades? No way!

By Reuters Staff
November 13, 2008

By Jeffrey Hodgson

Increasingly risk-averse hedge fund managers are in no mood to chase exotic trades as they scramble to boost returns.

Given the current environment, Robert Appleby, chief investment officer at ADM Capital, told the Reuters Global Finance Summit there was no need to seek out exotic trades or markets for healthy returns.

“You don’t have to go to weird, wonderful places … you don’t have to take exogenous risks — its right at your doorstep,” he said, referring to his funds’ focus on the main markets of Hong Kong, China, India and Turkey.

ADM began investing in distressed debt in 1998 following the Asian financial crisis. Its funds often buy out existing creditors to initiate financial or corporate restructuring of companies that are delinquent or at risk of bankruptcy.

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