AXA Launches Fund Of Black Swan Funds

Oct 26 2011 | 11:42am ET

AXA Investment Managers has launched what it calls the first fund of "black swan" hedge funds.

The new vehicle has been up-and-running for almost a year and currently manages between €400 million and €800 million for a small number of investors. But AXA plans to begin offering the fund more widely by the end of the year.

"There is a lot of mythology around tail-risk hedge funds; we have to do a lot of explaining," Francisco Arcilla, global head of hedge funds at the French insurer, told Financial News. "If investors look at it like a standalone investment, the demand is likely to be opportunistic and may slacken in calm markets, but if they look at it as an investment solution, as part of their portfolio, it could be of interest always."

One myth that proves true is that there simply aren't that many black swan funds, which seek to profit from improbable market events, available. Arcilla says there are between 30 and 50. But AXA is working with other hedge fund managers to build tail-risk portfolios exclusively for its fund of funds.

"When we need to make a substitution we can go to a long/short manager, say, that has never been known as a tail-risk hedge fund manager but has all the skills," he said. "We often try to build vehicles with managers."

The new fund is run by a pair of portfolio managers, Arcilla said.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note