About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, September 1st, 2:00PM
rss
Latest Headlines

Quality of hedge managers declining

A London hedge fund expert warns investors to be cautious when selecting hedge fund managers.

Thursday, December 13th 2001, 12:15AM

Not all hedge funds managers are created equal, and investors need to be cautious about who they give their money too.

That's the message from London-based David Smith who is the chief investment director of the GAM Multi Manager group.

He says with the proliferation of hedge funds in the past year to 18 months people need to be cautious when selecting managers.

"Quality is being replaced by quantity," he says. "And quantity is being supplied by some relatively inexperienced (managers) in the hedge fund world."

He says new managers have an increased, or added risk.

"There's many new entrants which have good one, two or even sometimes three year track records, but (they) have been managing less than US$10 or 15 million and all of a sudden they are going to have hundreds of millions of dollars at their disposal."

Smith says investors should seek out managers with long track records. They should also find out how much money they have been managing (and for how long), and they need to seek reassurance that a fund has adequate liquidity.

"I think caution is to be definitely encouraged because quality is definitely falling."

While Smith sounds a note of caution, he isn't trying to put people off hedge funds. He says there are talented investment managers out there, you just have to look harder to find them.

Smith, who managers money for Tower's GAM Multi-Trading fund, says there are good opportunities for managers in the global macro style of investing. (This is where managers try to make money based on predicting which way economies or asset classes such as fixed interest or currency, are heading).

"Global macro strategies offer some great opportunites in the next 6-12 months."

He says the market volatility which has been around for two years is likely to continue for another six years.

This volatility and market dislocations are good conditions for global macro traders.

Smith is less keen on the more popular long/short strategies.

"The outlook for them is a little bit more difficult," he says.

The key problem managers have is executing short-selling strategies. Smith says managers are identifying good stocks to short sell on fundamental research, however "pure momentum is driving them out as those stocks rally."

« Rothschild looks for a partnerSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Funds for fee-conscious customers
    “Whilst the Investment Series fees look high, they too are fully inclusive of all underlying fund and product manager fees...”
    8 hours ago by DavidBeattie
  • Appetite for annuities
    “I wouldn’t put too much faith in the purported outcome of any survey from the Commission for Financial Capability. If...”
    9 hours ago by Brent Sheather
  • nib plots more growth
    “Hi 'T", We have listened to Advisers and have a migration pathway for many customers. We will work wiith you to find the...”
    21 hours ago by Rob Hennin@nib
  • nib plots more growth
    “Hi Rob, Hope changes mean clients stuck in old closed groups or products where the loss ratio only goes one way because you...”
    1 day ago by T
  • Former Mike Pero broker banned
    “I was always told that RoT's weren't worth the paper they're written on. Sounds like the Pero contracts are very tough,...”
    1 day ago by Dirty Harry
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.24 5.10 5.25 5.59
ANZ Special - 4.69 4.89 -
ASB Bank 6.50 5.05 5.25 5.35
ASB Bank Special - 4.69 4.89 4.99
BankDirect 6.50 5.05 5.25 5.35
BankDirect Special - 4.69 4.89 4.99
BNZ - Mortgage One 6.65 - - -
BNZ - Rapid Repay 6.24 - - -
BNZ - Special - 4.69 4.69 -
BNZ - Std, FlyBuys 6.24 5.09 5.09 5.19
BNZ - TotalMoney 5.99 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.75 5.75 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
HBS Bank 6.14 5.39 5.39 5.39
HBS Special - 4.69 4.69 4.99
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.45 5.10 5.40 -
Housing NZ Corp 6.49 5.19 5.49 5.59
Lender Flt 1yr 2yr 3yr
HSBC Premier 6.60 4.89 4.89 4.99
HSBC Premier LVR > 80% - - - -
HSBC Special - 4.49 4.49 4.49
ICBC 6.75 5.99 6.39 -
Kiwibank 6.15 4.79 5.49 5.69
Kiwibank - Capped - - - -
Kiwibank - Offset 6.40 - - -
Kiwibank Special - 5.09 4.65 4.99
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.70 5.65 5.95 -
Lender Flt 1yr 2yr 3yr
NZ Home Loans 6.60 5.39 5.49 6.29
Perpetual Trust 7.70 - - -
Resimac 5.59 5.37 5.40 5.52
SBS Bank 6.14 5.39 5.39 5.39
SBS Bank Special - 4.69 4.69 4.99
Sovereign 6.35 5.05 5.25 5.35
Sovereign Special - 4.69 4.89 4.99
The Co-operative Bank 6.20 4.69 4.79 4.99
TSB Bank 6.24 5.10 5.39 5.45
TSB Special - 4.69 4.69 4.99
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.15 4.99 5.19 5.19
Westpac - Capped rates - 6.15 6.15 -
Westpac - Offset 6.15 - - -
Westpac Special - - 4.69 -
Median 6.40 5.09 5.25 5.35

Last updated: 18 August 2015 3:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com