Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

BNP Paribas and HEC Paris establish third BNP Paribas Hedge Fund Centre

Related Topics

BNP Paribas and HEC Business School have established a BNP Paribas Hedge Fund Centre at HEC in Paris, the third such centre to be set up following the creation of BNP Paribas centres at th

BNP Paribas and HEC Business School have established a BNP Paribas Hedge Fund Centre at HEC in Paris, the third such centre to be set up following the creation of BNP Paribas centres at the London Business School in 2001 and the Singapore Management University in 2006.

The goal of the hedge fund centres, including the new one in Paris, is to facilitate, encourage and sponsor national and international high-level academic research on the hedge fund industry. They will also provide education to students, executives and investors, and publish objective and independent information on hedge funds, while promoting understanding and awareness of alternative asset management.

The BNP Paribas Hedge Fund Centre at HEC will offer a varied programme of courses, including three-day ongoing training courses for investors and executives and alternative investment management modules as part of the Paris institution’s MBA and Master in Finance degree courses. The centre will also organise seminars and symposiums at which the results of research and discussions between executives and academics will be presented to a broader public.

The roles of the three hedge fund centres vary according to the activities of their host universities and researchers. In London, the centre focuses on fundamental research in pricing and investment strategies, while the Singapore centre carries out more specialised studies the role and features of Asian hedge funds. The centre at HEC will focus on the business model of hedge funds, their management structure and the strategic issues affecting them.

‘Our support for BNP Paribas Hedge Fund Centres underlines the growing involvement of several asset management and services business lines in the operation of hedge funds, ranging from BNP Paribas Investment Partners to BNP Paribas Securities Services and including private banking,’ says Alain Papiasse, manager of the BNP Paribas asset management and services division. ‘Given that we already support HEC in other areas, we considered it the best location for setting up this centre.’

HEC dean Bernard Ramanantsoa says: ‘The hedge fund industry is acknowledged worldwide. It is essential to improve understanding of this growing financial sector, notably via fundamental research. HEC’s underlying mission is to contribute to the development of ideas, knowledge and techniques in management sciences. The creation of the BNP Paribas Hedge Fund Centre at HEC, after London and Singapore, is a key step in our development strategy.’

David Thesmar, an associate professor of economy and finance at the institution, says: ‘During the past 15 years, third-party asset management has undergone a structural revolution with the arrival of hedge funds.

‘They have the talent required for ongoing financial innovation operating in efficient and flexible entities. These asset management firms are constantly evolving, innovating, competing with each other and dying. We must extend our study into their organisation and strategy. There is still little research into these issues today.’

Patrick Fauchier, chairman of BNP Paribas-owned fund of hedge funds manager Fauchier Partners and of the three hedge fund centres: ‘These centres are not designed to promote hedge funds. On the contrary, they must provide clear objective education to students and outsiders without taking sides, while supporting academic research of the highest level that is well founded, objective and impartial. In choosing HEC as the centre for continental Europe, we were guided by the excellence of its academic team and its international reputation.’

London-based Fauchier Partners, which was established in 1994 and is the specialist fund of hedge funds management business of BNP Paribas Investment Partners, carries out a four-step investment process – strategic allocation, manager and fund selection, portfolio construction and risk control – on behalf of a client base comprising institutional and private investors such as university foundations, banks, endowments, family offices, investment management companies, insurers, corporations and pension funds in Europe, the Middle East, Asia and Australia. The firm managed assets totalling USD6.8bn at the end of October.

HEC offers a range of education programmes including HEC Grande Ecole (Master of Science), specialised master’s degrees, full-time and part-time MBA programmes, an executive MBA programme in Paris and Beijing, the Trium Executive MBA programme in New York, Paris and London, and doctorate programmes. Founded in 1881, HEC has a permanent faculty of 104 professors and 3,000 students, and provides education programmes to more than 8,500 managers and directors every year.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured