Alexander Ineichen, Swiss asset managers say hedge fund of funds not done yet

According to Ineichen, "you can hear right now aThis Opalesque Roundtable is with 31 pages the
lot of people criticizing the fund of funds model.largest Roundtable script ever published by
They argue that its hey days are over. However,Opalesque. The discussion included various hot
I have a different view on that. I believe it istopics such as how Sharpe ratios can fool
mainly fund of hedge funds are in the business ofinvestors, why investors still shun managed
constructing conservative portfolios, not hedgefutures, a discussion on the value of transparency
funds.and risk factors as well as suggestions how to
Hedge funds are the building blocks of arestructure hedge fund fees.
conservative portfolio. With a fund of funds, youIn addition, the experts discuss:
have risk management on two levels. The hedge- ...which strategies and opportunities Swiss hedge
fund manager controls risk on a securities andfund managers and investors are pursuing in this
markets level, while the fund of hedge fundsrecessionary environment
manager controls risk on a single manager level.- ...that going forward, RMF will be handling close to
Given the uncertainty we are discussing, with the80% of US and Europe L/S hedge fund
markets where they are today - assuming thatinvestments via managed accounts
they normalize somewhat - I would advocate that- ...that while managed accounts are the biggest
the fund of funds model isactually quite strong."demand from end-investors, this trend could
Ineichen authored UBS’s most re-printedactually exacerbate the problems which may be
research reports: "In Search of Alpha", and "Thebrewing for the next crisis
Search for Alpha Continues" and published- ...how the Swiss hedge fund industry aims to
"Asymmetric Returns: The Future of Activerebuild investor confidence
Asset Management" and "Absolute Returns: The- ...where the Swiss regulators failed during the
Risk and Opportunities of Hedge Fund Investing".2008 crisis
Opalesque is now publishing the script of the- ...that there are already a couple of initiatives
Opalesque Zurich Roundtable. The event tookwithin the Swiss hedge fund investor community
place on February 26th 2009 at Man Group/to get together, and which interests they are
RMF’s offices in Pfäffikon and waspursuing
sponsored by Taussig Capital. Apart from- and share an exemplary story how one hedge
Ineichen, the following experts participated:fund manager changed the way a mainstream
- Frederic Berney. Chief Risk Officer, Harcourtnewspaper writes about hedge funds.
Investment ConsultingThe Opalesque Zurich Roundtable can be
- Christopher Brodie, Co-founder and senior funddownloaded here:
manager, Krom RiverAll other previously published Opalesque
- Jaime Castán, Head of Hedge Fund Research,Roundtable Scripts can be accessed here:
RMFAbout Opalesque:
- Uwe Eberle, Head of Institutional RelationshipMatthias Knab, Director of Opalesque Ltd,
Management, Member of the Managementmoderates the Opalesque Roundtables. Matthias
Committee, Man InvestmentsKnab is an internationally recognized expert on
- Prof. Dr. Peter Meier, Zurich Universityhedge funds and alternatives.
- Jim Mitchell, Senior Managing Director andIn 2003, with the publication of its daily Alternative
Co-founder, EWM GlobalMarket Briefing, Opalesque successfully launched
- Dr. Christian Raubach, Managing Partner ofan information revolution in the hedge fund media
Wegelin & Co. Private Bankersspace: "Opalesque changed the world by bringing
- Philippe Pillonel, Managing Partner, Constellationtransparency where there was opacity and by
Capital Advisorsdelivering an accurate professional reporting
- Ernesto Prado, Co-founder and Chiefservice." - Nigel Blanchard, Culross. This hybrid
Investment Officer, Areca Investmentfinancial news service, which combines proprietary
Managementindustry news stories and filtered third party
- Joseph (Joe) Taussig, Founder, Taussig Capitalreports, has been credited by many industry
The Opalesque Zurich Roundtable can beinsiders with delivering precise, accurate, and vital
downloaded here:information to a notoriously guarded audience.