EIP builds new business model for hedge funds
May 21, 2012
Tobias Bland, chief executive officer of Enhanced Investment Products in Hong Kong, isn’t your typical hedge fund manager. For one thing, he started the firm with a series of passive funds that was accompanied by a hedge fund
“Our core belief is separation of alpha and beta; beta should be freely available and inexpensive. We’re very different from a normal hedge fund because we run long-only money and hedge fund money,” opines Tobias Bland from his office in Hong Kong’s Central district.
Indeed, EIP today manages $450 million, about $365 million of which is in passive long-only funds. Bland, formerly the head of the proprietary trading desk at Jardine Fleming Securities (now part of JP Morgan) started EIP in 2002 with a series of enhanced index funds accompanied by a hedge fund, the EIP Overlay Fund.
The two groups support and play off against one another. The Overlay Fund is a market-neutral arbitrage fund that follows multiple strategies, including index arbitrage, convertible bond arbitrage, event-driven, share class arbitrage and pairs trading. It looks for anomalies in the region and has a captive stock borrowing...
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