Hedge Funds Why Fund of Funds Key Issues - PowerPoint PPT Presentation

1 / 9
About This Presentation
Title:

Hedge Funds Why Fund of Funds Key Issues

Description:

Hedge Funds Why Fund of Funds Key Issues – PowerPoint PPT presentation

Number of Views:54
Avg rating:3.0/5.0
Slides: 10
Provided by: User318
Category:

less

Transcript and Presenter's Notes

Title: Hedge Funds Why Fund of Funds Key Issues


1
Hedge Funds Why Fund of Funds ?Key Issues
  • Frederic Neefs
  • Senior Vice President,
  • Head of Investments London

2
Credit Agricole Alternative Investment Products
Group long term experience the key
  • Audited track record since 1992
  • Backing of Crédit Agricole Group rated AA
  • Significant industry experience
  • Experienced management team
  • Institutional client focus
  • Disciplined investment process
  • Established relationships with the leading hedge
    funds
  • 35 dedicated employees 15 investment
    professionals
  • Operations in London, Chicago, Paris and Tokyo
  • Assets under management over US 2 billion

3
Why Fund of Funds ?Key Issues
Growing importance of fund of funds as
institutional route to hedge fund investing
Source BARRA
4
Why Fund of Funds ?Key issues
Hedge Fund strategies are varied and changing.

Source TAS, HFR, EACM
5
Why Fund of Funds ?Key issues
Increasing number of managers detailed analysis
is both resource intensive and time consuming
requires global presence
Number of Private Hedge Funds
Source Credit Agricole / Watson Wyatt
survey Data VAN Hedge Fund Advisors
International.
6
Why Fund of Funds ?Key issues
  • Manager analysis is vital discipline,
    relationships, experience essential.

Manager universe 5,000 managers using public
and proprietary databases
Initial screening Quantitative
analysis Qualitative analysis initial manager
interviews
Result List of eligible managers, up to 150 for
each strategy
Manager visits analysis of investment process
strategy business model
Result Short lists, up to 20 for each strategy
Result Over 50 approved investments
Detailed due diligence Investment
recommendations to Investment Committee
7
Why Fund of Funds ?Key issues
  • Fund of funds can offer investors reduced risk
    and better risk adjusted returns.

ELIMINATION
Low performing Funds
Rigorous Investment Process
Portfolio Diversification
Risk Dilution
Fund of Funds the appropriate solution
8
Why Fund of Funds ?Key issues
  • The advantages to investors of using a Fund of
    Funds are
  • quick access at low cost - compared to developing
    extensive internal organisation
  • portfolios with targeted risk / return profiles
    with low correlation
  • a thorough analysis of strategies
  • a rigorous selection process of managers
    including creation of focused short lists of
    superior managers for each strategy
  • can overcome capacity issues
  • continuous monitoring of investments and the
    overall portfolio
  • active asset allocation
  • diversification create portfolios of
    alternative strategies that show low correlation
    to each other and to major market indices
  • a single investment and unified fee structure
  • simplified reporting and administration
  • standardised liquidity

9
Disclaimer
  • Credit Agricole Alternative Investment Products
    Group is a division of Crédit Agricole Asset
    Management London Branch, which is regulated by
    the Financial Services Authority for the conduct
    of investment business in the United Kingdom.
    This presentation is for information purposes
    only and is not intended as an offer or
    solicitation with respect to the purchase or sale
    of securities, including shares of the Funds.
    Shares of the Funds are offered on the basis of
    their prospectus only. Opinions and estimates may
    be changed without notice. The Funds are
    unregulated collective investment schemes for the
    purposes of the UK Financial Services and Markets
    Act 2000 (the FS Act). Accordingly, this report
    is for distribution solely to persons in the UK
    permitted to receive it under section 238 of the
    FS Act and regulations made thereunder, and to
    persons in other jurisdictions who may receive it
    without breaching applicable legal or regulatory
    requirements. It may not be copied or
    distributed to any other person and must not be
    distributed to private customers in the UK. The
    past performance of investments is not
    necessarily a guide to future returns. Changes
    in rates of exchange and other factors may cause
    the value of an investment to go up or down.
    Additional risk factors are described in each
    individual fund prospectus.
Write a Comment
User Comments (0)
About PowerShow.com