Lombard Odier To Close Two Funds Of Funds, Open Two New Ones

Jun 3 2009 | 3:32am ET

Lombard Odier Darier Hentsch & Cie is closing a pair of funds of hedge funds, but plans to replace them in its product line with two new funds of funds.

The Swiss private bank said yesterday that it would liquidate the Delta Global and Alternative Strategies funds, which manage a combined 1.1 billion Swiss francs (US$1.03 billion), Reuters reports. The funds were battered by the economic crisis last year, losing 41% and 30%, respectively, and have been buffeted by redemption requests. The liquidation plan announced by the firm will allow it to avoid forced sales of the funds’ more illiquid assets at distressed prices.

Closing Delta Global, which launched in 1991, and Alternative Strategies give Lombard Odier the opportunity “to create the economic equivalent of side pockets and to restructure our product range by launching new products at the end of June,” Cedric Kohler, co-head of hedge funds at the bank, told Reuters.

Lombard Odier said it expects to return about 60% of the funds’ assets to investors this year, with the rest to come next year.

While Delta Global and Alternative Strategies are out, two new funds are in at Lombard Odier. The firm has already prepared a pair of products for debut at the end of the month: LO Dynamic Alternative Strategies, a multi-strategy fund, and LO Alternative Beta, a hedge fund replication index product.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note