Tuesday, 21 October 2014
Last updated 33 min ago
Jan 19 2010 | 1:06pm ET
Marshall Wace Asset Management, one of the pioneers of publicly-listed hedge fund vehicles, is going a step further, planning an exchange-traded fund to track its flagship strategy.
The London-based firm, which has seen its assets under management drop by two-thirds of the past two years, will list its Tops Global Alpha ETF on both the London Stock Exchange and Deutsche Börse. It will be the first ETF designed to track a single hedge fund manager, in this case Marshall Wace’s Tops strategy, rather than an index. Tops itself includes six separate hedge fund strategies.
Marshall Wace was also among the first hedge funds to create closed-end exchange-listed hedge funds, listing its MW Tops fund in Amsterdam in 2006. But unlike closed-end funds, which have a set number of shares and are thus prone to trading at either a discount or premium to a fund’s net asset value, ETFs issue shares based on demand.
The firm hopes to raise US$500 million for the Tops ETF, and is targeting an annual return of between 8% and 10%. The ETF will charge only 0.25% annually, but investors in it will still pay the 1.5% management fee and 20% performance fee charged by the underlying Tops funds.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...