Institutional alpha quest leads to separate account mania

Fri Jul 2, 2010

A new era of transparency, liquidity and control centres on managed accounts

By Susan Barreto

Managed accounts have been sold as the cure for every hedge fund ailment post 2008 but sceptics have argued that there are few really justifiable reasons to take this road. And yet, institutional investors seem to be buying the story with gusto. Now there are hard numbers surfacing from groups such as Investcorp and Innocap Investment Management to prove that investors are accessing separate accounts and poised to benefit over the long term.

Deepak Gurnani and Christopher Vogt

Globally, funds of hedge funds, distribution platforms and pension plans are ready to reorient the hedge fund rules in their favour once again despite the critics who view managed account platforms as a passing fad stemming from the post-Madoff era.

At least 10 pension funds with hedge fund portfolios totalling $39 billion are considering or are have already invested in managed or separate accounts, according to InvestHedge. There...

ISSN: 2151-1845 / CDC10004H

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