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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR