Vodia Group: 130/30 Funds ‘Disruptive’ To Asset Managers, Brokers

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.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.