Lyxor’s Managed Account Platform is the industry’s largest individual commingled managed account platform. With over 100 managers running a diverse range of hedge fund strategies, the Lyxor MAP is committed to providing its investors – fund-of-funds, pension funds, insurance companies, private banks – with access to a universe of best-in-class talent.
Total AuM on the single managed account business is approximately USD11billion (as of end 2012).
Approximately two thirds of the managers on the platform are headquartered in the US, and thanks to the market leader reputation Lyxor has built over the 15 years of its MAP history, it is fast establishing a firm footprint in the North American market.
“The Lyxor MAP is helping to position us as a solution provider in the US, but it goes further than that. At Lyxor Inc in New York we offer advisory services and FoHF solutions, we have analysts and an operational due diligence department. That is something we are keen to emphasis to the marketplace,” says Stefan Keller, Head of MAP Research & External Relations at Lyxor.
Recognition that Lyxor’s reputation is growing in the US is evidenced by the fact that it was recently awarded a mandate from CalSTRS (a US-based institution).
With US hedge funds returning to form this year, in terms of performance, coupled with a willingness for US institutions to increase their allocations to alternative investments, this is a fertile time for Lyxor, and as Keller confirms: “We see a lot of potential for expansion in the US (with respect to US managers). We are working on a number of projects. But while institutions remain the biggest target, we are also able to offer investment solutions for 40 Act funds (mutual funds) to cater for private bank clients and retail investors. We are in discussions with some of the largest US fund distributors currently.”
For US managers, there are two distinct advantages to being on the Lyxor MAP. The first, and most obvious, is global distribution. That Lyxor has a reach in all major global financial markets opens the door up to managers that might otherwise not be open to them. The second is the enhanced reputation that managers can enjoy, in the eyes of potential investors, by being on Lyxor’s MAP.
“It’s a seal of approval for managers who can demonstrate to the investment community that they comply with the rules and strict guidelines established and enforced by Lyxor: this is clearly something that has more value in today’s regulated environment,” notes Keller.
On performance this year, Kellar adds that among US managers three strategies have benefited the most from market conditions so far in 2013: long/short equity strategies, special situation strategies, and merger arbitrage (M&A focused event-driven strategies).
“Our long/short equity variable bias managers are currently holding an 80 per cent net long position, which is historically very high,” confirms Keller. “They have been reaping the benefits of a strong S&P 500, and had a nice run. Merger arbitrage managers are well represented on the platform, and this year there has been success for managers targeting the large mega deals in Q1, as well as those focused on smaller deals.
“There is not as much beta in these event-driven strategies and we have a number of managers in double-digit territory already this year.”
On winning the Hedgeweek US award for Best Managed Account platform for the second consecutive year, Keller enthuses: “We are very proud. For Lyxor this is great recognition and shows that we have established ourselves in the US market. That is of utmost importance to us.”