UBP: ‘Some Big Hedge Funds Don’t Get It’

Oct 14 2008 | 4:26pm ET

Union Bancaire Privée, the largest single allocator to hedge funds by assets under management with $56.87 billion, has reportedly trimmed its exposure to hedge funds at a critical time for the industry.

Christophe Bernard, the Swiss-based firm's head of asset management, said his firm cut its hedge fund exposure to between 20% and 25% from 30% at the end of last year and had also moved to more conservative or cash-generative hedge fund strategies, Reuters reports. 

“Hedge funds are meant to produce absolute returns,” said Bernard, in an interview. “If we say nothing happens (by the end of the year) it will be down 10% to 11%. The basic function of hedge funds will have failed.”

Bernard also said that the firm’s portfolio has had a faster turnover rate than ever before since last January.

“We have well-established firms, big ones, that in our opinion don't get it. And if we believe they don't produce the returns for our clients in the long term we don't want to be involved.”

In April, UBP told FINalternatives that it was raising some $600 million to launch a pair of funds of funds in June focused on distressed hedge fund and private equity managers.

UBP currently manages a total of $121 billion with some $56 billion allocated to hedge funds.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.