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By Gene Ekster – Some historians note that in the 50’s Sam Walton, the founder of Wal-Mart, would get into his silver 75hp two-seater airplane and take to the skies to count cars in parking lots with the aim of making better decisions about his firm’s real estate investments. Today investors, with the help of companies like RS Metrics and their satellite imagery product, can scour the parking lots across the globe from their computers and make trading decisions in the spirit of Sam Walton.
Datasets such as the ones from RS Metrics, are known as alternative data in the financial circles
As global banks deleverage and pursue a course of balance sheet strengthening, the opportunities to build exposure to bank debt have become numerous. Loan trading in 2013 rose to USD530bn. According to eVestment, floating rate bank debt was one of the top 10 most searched universes by consultants towards the end of last year.
The fact that this remains quite an esoteric asset class gives hedge funds an advantage over other market participants and the opportunity to look for value.
“If you look at our customer base, 10 years ago there were a handful of players in the loan
Hedge360’s Risk Reporting Service, as part of the platform’s managed service offering, equips managers with the tools needed to manage and effectively report risk to an institutional standard.
Laurence Wormald identifies this growing level of institutionalisation, coupled with regulatory requirements, which under AIFMD in Europe are akin to the UCITS regime, as two primary drivers for enhanced risk management.
“Hedge fund managers essentially need to mirror the same levels of risk management that institutional managers have been doing for many years. We’re very familiar with that. SunGard has over 175 institutional clients using our risk solution; we know what
Global Derivatives Indices (GDI) has formed a strategic partnership with Tradition, the interdealer broking arm of Compagnie Financière Tradition, to use prices from Trad-X to calculate a new USD version of GDI’s Constant Maturity Index (CMI).
This will underpin the GMEX interest rate swap (IRS) Constant Maturity Futures (CMF) contracts.
Under the terms of the partnership agreement, GDI will source firm tradable bids and offers from Trad-X, Tradition’s global trading platform, to calculate a new USD-denominated weighted-average index designed to reflect the USD IRS market in real-time. Additionally, Trad-X will contribute prices to the existing GDI EUR IRS index
EY (Ernst & Young) last year published an operational efficiency survey and in it, they found that 40 per cent of respondents had already outsourced their middle office functions (26 per cent), or planned to over the next two years (14 per cent). Aside from the cost benefits, managers have to demonstrate that their operations are institutional-grade quality. Investors now ascribe the same level of importance to a manager’s operational infrastructure as they do the investment thesis and track record.
This is driving managers towards the adoption of managed services. One of the primary reasons for doing so is the
SunGard’s Hedge360, a cloud-based platform that launched in 2012, puts the power of institutional-grade controls firmly in the hands of hedge fund managers as they strive to achieve institutional-grade credibility. The platform supports the full lifecycle of a fund’s activities front through back, seamlessly integrating its full range of solutions from Front Arena, VPM, InvesTier through to risk management via APT.
Aside from the technology capabilities of Hedge360, which managers can avail of either as an installed or hosted option, what is really driving uptake in the platform – largely because of institutional demand – is the managed services component.
Source this week announced the listing of the Source EURO STOXX Optimised Banks UCITS ETF on the London Stock Exchange. The fund provides exposure to banks within the Eurozone and is optimised to reduce exposure to illiquid stocks.
Michael John Lytle, Chief Development Officer, said that the results of the European Central Bank’s Asset Quality Review have shed light on the health of the region’s banks as well as the broader European economy. “For investors who want to increase their exposure to Eurozone banks, this ETF provides the opportunity to gain access quickly and efficiently. It is the second banking
CBOE Holdings' net income allocated to common stockholders was of USD48.1 million, or USD0.57 per diluted share, for the third quarter of 2014, compared with USD41.0 million, or USD0.47 per diluted share, in Q3 2013.
Operating revenue for the quarter was USD148.9 million, up nine per cent compared with USD136.7 million in the third quarter of 2013.
There were no non-GAAP adjustments for the third quarter of 2014 or 2013.
"Our strong third-quarter results reflect improved trading volume both sequentially and year-over-year across each of our product categories, as more normal levels of volatility returned to the market,"
Hedge fund law firm Kleinberg, Kaplan, Wolff & Cohen has appointed Jared R Gianatasio as senior counsel where he will focus his practice on investment funds and derivatives.
He was previously a senior associate in the New York office of Shearman & Sterling where he practiced in the firm’s derivatives and investment funds practice.
Gianatasio follows the arrival, in August, of Joseph Iskowitz to the firm’s hedge fund practice.
Gianatasio has extensive experience representing market participants in the structuring and documentation of complex over-the-counter and exchange-traded derivatives transactions.
This includes developing, drafting and negotiating highly structured derivative
With lower expectations for traditional assets, many institutional investors have increased their allocation to more flexible, alternative assets to secure both performance and diversification for their portfolios. As a result, hedge funds are now growing faster than any other types of assets.
Multi Hedge-Funds bring a combination of expertise to meet investor transparency requirements and optimize the risk-return ratio. It makes it easier to access a range of strategies adapted to volatile market context, which are often too complex to analyze and select directly.
Sources of performance can be better identified, with a more precise and detailed view over
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