UBS taps into hedge fund ‘Holy Grail’ with Liquid Alpha platform
Tue Jul 3, 2012
A late entry into the managed account market gives UBS a competitive edge in the post-crisis investment arena
By Claire Makin
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...
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