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

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.