Tuesday, 21 October 2014
Last updated 1 hour ago
Mar 27 2008 | 2:00am ET
3D Capital plans to add a hedge fund seeding unit within the next few months. However, this seeder will not market or help manage its underlying managers.
Marc Bodin, managing director, said the Zurich, Switzerland-based firm is making its foray into the hedge fund space one step at a time. He added that 3D may include marketing and operational in the future if the market warrants it and it is legally cleared to do so.
“We also have to look at it from a legal perspective if it is correct to provide marketing services together with the financing services,” said Bodin. “There should be a Chinese wall between out structuring/consulting work and the marketing work because we want to make sure there are no conflicts of interest.”
So why is 3D, a private equity consultant and investment firm traded on the Frankfurt Stock Exchange, looking to invest in hedge funds?
Bodin said the firm sees no difference between supporting a production company and a hedge fund, because, “whenever we’re convinced that we’ve found talent, then we’re of the opinion to support it.”
However, hedge fund replicators and quantitative managers need not apply, because 3D will look to invest in managers with “simple business models,” such as long/short equity shops.
“They’re very stable and have full control of their businesses, especially in relation to the ongoing crisis in the financial markets,” said Bodin.
3D, which may take a part of the underlying managers’ general partnership or share in its profits, is in the process of setting up an advisory board and is in negotiations with hedge fund analysts to head its new business.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...