Deutsche Bank: Shariah Hedge Funds Set To Soar

Feb 5 2008 | 12:12pm ET

Islamic hedge funds are set to take off in the second half of the year, according to Deutsche Bank’s head of Middle East structuring.

“There is demand for Islamic hedge funds, mainly from high net-worth individuals who already look at conventional hedge funds and would have a preference for Islamic,” Geert Bossuyt said at the Reuters Islamic Finance Summit. “In my opinion, people are getting more used to Islamic finance and are making their prime brokerage ready… and some actively promoting, and 2008 could be the new birth of Islamic hedge funds.”

According to Bossuyt, major institutions, including his own firm, are beginning to respond to the demand for Shariah-compliant hedge fund offerings. In addition, structures for such funds are becoming more defined, though there remain thorny issues to work out.

“You have to sort out the shorting issue,” he said. “You can’t sell what you don’t have in Islamic finance.”

Even synthetic shorts may be a problem, Bossuyt said, with Islamic scholars divided on whether they could be permissible.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note