By Claire Makin
When Swedish insurer Folksam decided to offer a hedge fund
option to pension savers, senior adviser Göran
Emtesjö flew to London to talk to some global fund
providers. To his surprise, none of them was interested in
teaming up with Folksam to offer the product.
So what were the sticking points? Unsurprisingly, fees and a
lack of upfront capital commitments, it turns out –
but also a resistance to UCITS. "They said, 'UCITS III is not a
real product; we’ve been running hedge funds for
20 years’," Emtesjö recalls.
In the end, Folksam looked closer to home and chose to work
with a local fund of hedge funds group, Optimized Portfolio
Management. Stockholm-based OPM is a research-driven house
founded in 2003 by Simon Reinius, and is now 50%-owned by
Carnegie Investment Bank. It runs more than $400 million for
pension funds, endowments, private banks...