This new story about potential job losses in hedge funds come from a vague report produced by a search company announcing unproven numbers that are supposed again to put the hedge fund sector under straight!
How can one predict the number of jobs in the hedge fund sector? This story only creates some sort of anxiety around the myth of the hedge fund sector.
Downsizing business has already happened since 2008 in most of the hedge fund houses. As an entrepreneur, this is the first thing you do and it is the healthier option to survive.
Yes, most funds of hedge funds have reduced staff in sales, in operation and in analysts.
Nothing new here.
Just wind....
Wednesday, 11 March 2009
Thursday, 5 March 2009
Please don't tell my mother that I am in the hedge fund business....
Editorial from Paris: 5 March 2009
Several french managers in France, managing hedge fund type of products, are seriously considering changing camp!
Before 2009, they used to call themselves "hedge fund managers" despite the use of low leverage and conservative ways to manage positions, sometimes far away from the US hedge fund managers.
Now that most institutional investors do not wish to hear anymore about hedge funds or "Gestion Alternative" (as they say in France), because of bad press (and bad investment choices...), the same ones do not wish to be assimilated to the "hedge fund sector"! Active managers? Absolute Returns? Plain vanilla funds? What would be the term to choose?
Is it so terrible to be associated to hedge funds? Respond to our survey below!
Several french managers in France, managing hedge fund type of products, are seriously considering changing camp!
Before 2009, they used to call themselves "hedge fund managers" despite the use of low leverage and conservative ways to manage positions, sometimes far away from the US hedge fund managers.
Now that most institutional investors do not wish to hear anymore about hedge funds or "Gestion Alternative" (as they say in France), because of bad press (and bad investment choices...), the same ones do not wish to be assimilated to the "hedge fund sector"! Active managers? Absolute Returns? Plain vanilla funds? What would be the term to choose?
Is it so terrible to be associated to hedge funds? Respond to our survey below!
Sunday, 15 February 2009
INFOHEDGE 10 available now!
Our latest edition, published on the 12th of February, is available in electronic version on request at svs@asterias.com.
Discover our analysis on the evolution of the sector.
Written by professionals for professionals!
Discover our analysis on the evolution of the sector.
Written by professionals for professionals!
Tuesday, 10 February 2009
SGAM AI' s latest analysis on liquidity issues
10 February 2009
One of the major consequences of the current crisis that engulfed the world financial markets in 2008 has been a substantial decrease in liquidity in almost every asset class. As market players sought to simultaneously deleverage their existing holdings of financial instruments, liquidity suffered severely while the market for certain asset classes came to a complete standstill.
This illiquidity only served to complicate the redemption requests hedge funds received from investors at year- end. The industry was hit with a substantial amount of redemptions – the largest outflow ever reported. In addition to imposing gates, a number of hedge funds that could not accommodate the amount of redemptions placed by investors were forced to create side pockets to hold these illiquid instruments in which they were invested. Technically, most side pockets are merely a new share class created to hold these illiquid assets which is allocated to every investor of the fund.
Société Générale Asset Management Alternative Investments (“SGAM AI”) has attempted to avoid investing in hedge funds which invested in illiquid instruments or had the potential to do so, without such hedge funds having the corresponding structural liquidity terms to support such investments (i.e. we attempt to avoid the possibility of a liquidity mismatch for investors). Given the extent of the illiquidity that has overtaken the financial markets, we generally viewed the creation of these side pockets as a positive. Doing so is the best means for hedge funds to treat remaining and redeeming investors equitably. The side pockets created by our Fund of Funds are a result of those created by the underlying managers. Below, we describe the general
types of side pockets in the Fund of Funds.
The full analysis is available on request.
One of the major consequences of the current crisis that engulfed the world financial markets in 2008 has been a substantial decrease in liquidity in almost every asset class. As market players sought to simultaneously deleverage their existing holdings of financial instruments, liquidity suffered severely while the market for certain asset classes came to a complete standstill.
This illiquidity only served to complicate the redemption requests hedge funds received from investors at year- end. The industry was hit with a substantial amount of redemptions – the largest outflow ever reported. In addition to imposing gates, a number of hedge funds that could not accommodate the amount of redemptions placed by investors were forced to create side pockets to hold these illiquid instruments in which they were invested. Technically, most side pockets are merely a new share class created to hold these illiquid assets which is allocated to every investor of the fund.
Société Générale Asset Management Alternative Investments (“SGAM AI”) has attempted to avoid investing in hedge funds which invested in illiquid instruments or had the potential to do so, without such hedge funds having the corresponding structural liquidity terms to support such investments (i.e. we attempt to avoid the possibility of a liquidity mismatch for investors). Given the extent of the illiquidity that has overtaken the financial markets, we generally viewed the creation of these side pockets as a positive. Doing so is the best means for hedge funds to treat remaining and redeeming investors equitably. The side pockets created by our Fund of Funds are a result of those created by the underlying managers. Below, we describe the general
types of side pockets in the Fund of Funds.
The full analysis is available on request.
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