UBS taps into hedge fund ‘Holy Grail’ with Liquid Alpha platform

Tue Jul 3, 2012

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A late entry into the managed account market gives UBS a competitive edge in the post-crisis investment arena


By Claire Makin

Johan Groothaert
Desikan Narasimhan
With a managed account platform that is less than two years old, UBS might be expected to feel overshadowed by its long-established rivals. On the contrary, the big Swiss bank claims that being a newcomer gives it a competitive edge. Instead of protecting an existing franchise built on a pre-crisis business model, UBS is free to build a versatile platform adapted to the demands of a new environment, according to Desikan Narasimhan, chief investment officer of the $2.5 billion UBS Liquid Alpha platform.

In this new world, hedge funds will move to onshore jurisdictions, be subject to greater regulatory oversight, and be integrated into mainstream portfolios. "We need to fundamentally change the paradigm of investing into hedge funds," Narasimhan says.

The shift is already underway, as investors choose more liquid alternatives to the traditional commingled fund model. UBS Liquid Alpha aims to be...

ISSN: 2151-1845 / CDC10004H

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