Hedge Fund Reader : Alternative investments to be part of HNI investment portfolio

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July 14, 2005

Alternative investments to be part of HNI investment portfolio

10 to 15% of every HNI (High net worth individual) portfolio will from now on comprise alternative investments such as private equity and hedge funds. This was made public by UBS Global Asset Management (UBS GAM). In order to diversify risk and also for the purpose of having fixes income investments, alternative investments are the best bet according to Gerhard Fusenig, head of investment fund services at UBS GAM. The asset management firm is quite optimistic about inflow of high volumes of funds primarily from institutional investors into hedge funds despite a relatively weak performance this year. Commenting upon the recent bout of redemptions from hedge funds, Mark Wallace said that the development is health as it would take some ‘heat’ out of the market. Mark Wallace is chief operating officer at UBS GAM. He also mentioned that since the time UBS GAM decided to sell third party funds along with its own products, several smaller firms have been affected adversely. Apart from this, the inclusion of third party funds has led to overall better performance of the firms fund managers. Hedgefundsworld.com reports:

“Mark Wallace, chief operating officer at UBS GAM, said the losses of some hedge funds in credit markets and the recent bout of redemptions is a healthy development and would take some heat out of the market.”

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July 14, 2005 in Research | Permalink