Monday, 1 September 2014
Last updated 3 days ago
Oct 12 2010 | 1:09pm ET
Fund of hedge funds firm SAIL Advisors plans to invest more of its assets in less liquid hedge fund strategies, and may dip its toes into the hedge fund secondary market.
The Hong Kong-based firm said it will consider hedge funds with lockups of up to two years for its US$1.2 billion Flagship Fund, Bloomberg News reports. The firm is also looking at the secondary market, hoping to snap up attractive investments at a sizeable discount.
"There are some assets, some opportunities out there that are just very attractive, but people don't have the appetite to go after that," CEO Vincent Duhamel told Bloomberg. "We have capital that is very long term. We can earn a liquidity premium because we're willing to commit longer term."
As for stakes available on the secondary market, Duhamel pointed to funds with redemption restrictions and side-pockets.
"Sometimes there are some pretty good assets behind that," he said. "It's just a question that it's going to take more time before you can achieve higher returns."
SAIL's move towards less-liquid funds comes as it seeks to differentiate its Flagship from the US$557 million Topaz Fund it took over from ING Groep earlier this year. Topaz features monthly liquidity, as opposed to quarterly for Flagship, making it harder for the former to invest in illiquid funds.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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