Friday, 29 August 2014
Last updated 9 hours ago
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.
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…
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 ...