SGAM Alternative Investments is on target to reach USD 7 billion in hedge fund assets under management this year, an increase of 70 per cent.
Arié Assayag, Global Head of Hedge Funds at SGAM Alternative Investments, said that this significant increase in assets under management has bucked the global trend. He said that growth was achieved by positioning SGAM AI as a global, institutionally-focused and process-driven provider of investment solutions.
While SGAM AI continues to show growth in its existing funds of hedge funds, its new launches are also arousing interest.
The Starway fund of hedge funds, launched in the summer and investing in emerging hedge fund managers (see previous Hedgeweek article), will soft close in mid-November with around USD 500 million under management.
Launched out of SGAM AI's New York-based FoHF operation, Starway is expected to raise up to USD1 billion following a second round of marketing early next year.
SGAM AI is also examining the potential for marketing its funds of hedge funds to institutional investors in the UK.
Assayag said: "We currently have no dedicated funds for the UK market, but the SGAM UK staff are always looking at new markets for our funds, and although we also use the normal intermediary channels or consultants for marketing to institutions throughout Europe, we are looking at the possibility of direct marketing of our product range to institutions in the UK."
He added: "We see growing interest among UK institutions for funds of hedge funds and we want to assess and tap into this interest within a few months."
Looking ahead, Assayag said: "Hedge funds will have to compete with the high returns of some mutual funds investing in the emerging markets and the equity markets. Therefore, the growth of hedge funds' assets will be harder with private banking clients but will remain strong with institutional clients. SGAM AI is well prepared to face this challenge as we integrate this situation into our development strategy."
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