Wednesday, 17 September 2014
Last updated 51 min ago
Apr 26 2013 | 10:18am ET
Hedge funds are poised to be the big beneficiaries of the fallout from the financial crisis and the economic recovery—at the expense of banks—a top Deutsche Bank executive said.
CFO Stefan Krause told a Berlin conference yesterday that hedge funds are both luring banks' best talent with promises of better pay and will probably do best, performance-wise, during the recovery. Krause blamed new regulations for the brain-drain to hedge funds, including stricter capital requirements and other rules forcing banks to quit some business, and new bonus limits that apply to banks.
Krause said most bankers who leave his firm go to hedge funds.
"Our business is people-contingent and you'll never be able to pay competitively," he said. "What you can do is structure your pay differently so it's longer-term oriented."
Those bankers who do defect to hedge funds are likely to enjoy the fruits of their new labors, Krause added.
"There are businesses, based on our capital regulation, we'll not be able to do," he said. "Hedge funds will be able to. If I had to bet who is going to benefit the most post-crisis from the asset appreciation you have coming, then certainly hedge 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…
There are two things currency analysts agree on: Currencies have never gone through such a period of low volatility and the dollar must lead the sector out of the current malaise.