Tuesday, 31 May 2016
Last updated 3 days ago
Oct 17 2008 | 11:05am ET
Zurich, Switzerland-based Finvest Asset Management has been awarded a US$300 million mandate from a European institutional investor for the fund of funds arena, as part of a low risk strategy to capitalize on the pullback in the market.
Allocations will be made to funds which have a track record of at least three years and which are targeting between 10 to 15% per annum. Additionally, Finvest will also look at funds of funds that may have sustained drawdowns. Although many investors are running for the hills, and fund redemptions are occurring at an unprecedented rate, Finvest says its initiative, “demonstrates that level headed investors are taking a long term view, and appreciate that while caution is not out of place, the markets will ultimately achieve a platform of stability.”
Finvest portfolio strategist Mayer Greenwald admits that the decision to allocate to hedge funds goes against the current trend, but says there is a tremendous amount of upside in the fund of funds space, providing that portfolio managers apply the appropriate risk management.