Friday, 22 August 2014
Last updated 1 hour ago
May 31 2013 | 10:17am ET
One pension fund manager has a message for his peers: Start acting like a global macro hedge fund, or pay someone to do it for you.
Theodore Economou, who leads the European Center for Nuclear Research's 4 billion Swiss franc pension fund, urged other pension to act as his does, employing sophisticated risk-management systems to cut volatility and improve returns, much as the best global macro hedge funds do. And if that's not possible, Economou says, pension should hand their entire portfolio to a hedge fund manager.
"We manage towards an absolute return target," he told Professional Pensions. "We believe our model can and should be replicated by pension funds with the same goals as CERN because we think the model represents an answer to the industry's challenges."
Economou adds that the hedge fund industry can "come to the rescue of the pension fund industry."
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note