DB Report: Boston Family Offices Like EM, Euro Regulators Remain Active

Aug 18 2014 | 1:03pm ET

Boston family offices are looking for emerging managers, disappointing earnings from European firms have led to increased short interest and European regulators have not taken the summer off, according to the August hedge fund trend report from Deutsche Bank Global Prime Finance.

Single and multi-family offices in Boston are particularly interested in emerging markets managers, according to the DB's capital introduction group, while endowments and foundations in Texas are requesting managers that fit their “opportunistic” asset risk bucket which typically includes “short credit, equity event-driven and specific short-term trade ideas.”

European investors, on the other hand, have shown greatest interest in equity long/short and global macro to date in 2014. In Japan, pension funds are in the very early stages of hedge fund investing.

DB's securities lending team saw short interest pick up due to disappointing earnings reported by European firms, particularly in technology, airlines and banking. M&A seemed to outpace convertible issuance in July with a series of international deals across industries.

European regulators remained active throughout the summer with the UK FCA publishing papers on wholesale competition review, dealing commission and banking accountability.

The European Securities & Markets Authority also published updates on its Q&A document on the Alternative Investment Fund Managers Directive to clarify reporting obligations, published draft rules on central clearing of OTC derivatives and consulted on UCITS counterparty risk.

In Hong Kong, the regulators also focused on OTC derivatives, releasing a consultation paper on transaction reporting and record keeping while in the US, the SEC approved final rules to reform money market funds.


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