Sunday, 4 October 2015
Last updated 2 days ago
Feb 12 2008 | 2:33pm ET
A new report says that 130/30 strategies have created more revenue streams and, in turn, more competition among brokers and custodians, as well as creating a new asset class.
Brokers and custodians are converging in offering both custody and financing to 130/30 funds and both groups stand to earn $1.26 billion in annual revenues from 130/30 strategies by 2012, according to the Vodia Group. Brokers have made substantial marketing inroads with institutional investors, 44% of which say that they would custody their planned 130/30 investments with a prime broker.
As well, 130/30 funds are “eroding boundaries” in the asset management industry by “speeding up the already blurring distinctions between traditional long-only asset managers and long/short hedge funds.” As a result, asset managers are moving towards hedge funds in pricing.
For all the hype concerning 130/30 funds, institutional and retail investors are just beginning to test the waters for hedge fund-like strategies. A recent Vodia Group survey found that 14% of institutional investors said that they had already invested in 130/30.
Vodia Group offers research and consulting to providers and users of credit, risk and securities lending products.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…