Alternative Viewpoints: Réplication de fonds de couverture
Pierre Saint-Laurent, CFA, CAIA
Mon., Feb 04
"Réplication de fonds de couverture", posted February 4 on AllAboutAlpha.com
Pierre Saint-Laurent, CFA, CAIA
President of AssetCounsel Inc. and head of the Canadian chapter of the CAIA Association
Vice President, Graystone Research, Morgan Stanley
From AllAboutAlpha.com: As we pointed out in a posting a couple of weeks ago, there seems to be a little je ne sais quoi in the water in Montreal that breeds hedge fund replication providers. Montreal-based Pierre Saint-Laurent ... weighs in on why the city founded by sailors in 1642 is now making waves in the hedge fund world.
Alternative investments, and hedge funds in particular, have raked in the assets so far in the 21st century because of low returns from traditional strategies, pension fund deficits, an urge to diversify (and maintain low correlations even when all traditional asset classes spike, such as in the tech meltdown) and somewhat of a 'nothing works anymore' mindset.
Indeed, investors seem to like alternatives so much that they are willing to deal with lower transparency, hard-to-explain strategies, and (arguably) higher fees. There's a reason for all that: alternative asset managers, and hedge fund managers in particular, need the secrecy and privacy to move quickly and efficiently.