Wednesday, 17 December 2014
Last updated 8 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.