First half 2008 ETF report by Deborah Fuhr and Shane Kelly.pdf


Take note of the astounding differences in the use of European domiciled ETFs vs European
domiciled mutual funds when we compare net sales data as calculated by Lipper Feri for the
first half of 2008. Net sales of mutual funds domiciled in Europe excluding ETFs were minus
63.1 billion euro in the first six months of 2008 while during that same period net sales of ETFs
domiciled in Europe were a positive 21.9 billion euro.

Exchange traded fund industry at the end of July 2008 .pdf


Since the first ETF (Exchange Traded Fund), was launched in the US in 1993, ETFs have opened a
new panorama of investment opportunities. The landscape of opportunities you can access with
ETFs continues to expand. ETFs are a relatively new kind of open�ended investment funds that are
listed on stock exchanges. The majority of ETFs are passive index funds. ETFs trade during
exchange market hours and are bought and sold on a commission basis like shares. Most ETFs can
be sold short and are lendable and marginable.

Seeking Returns in Turbulent Markets, August 2008.pdf


Seeking Returns in Turbulent Markets: The Case  for Hedge Funds During Market Downturns

Voisin Volaw Jersey Brief Summer 2008 - Voisin Volaw


Voisin Volaw Jersey Brief Summer 2008 - Voisin Volaw

Working group report on Italian mutual fund industry July 2008.pdf


Working group report on Italian mutual fund industry July 2008.pdf

Hedgeweek special report on Spanish Hedge Funds 2008.pdf


Hedgeweek special report on Spanish Hedge Funds 2008

Singapore Exchange - Proposed Amendments to the Listing Rules.pdf


Singapore Exchange - Proposed Amendments to the Listing Rules.pdf

CO2Emissions â€" A New Asset Class for Institutional Investors.pdf


Trading in carbon dioxide instruments such as the European Union’s EU Emission Allowance and Certified Emission Reductions has grown significantly over the last five years and prompted the development of OTC and exchange-traded carbon derivative products, says a new study published by international derivatives exchange Eurex.

Hedgeweek Special Report on Bermuda Hedge Funds Services 2008.pdf


Hedgeweek Special Report on Bermuda Hedge Funds Services 2008

Comment - Cracks in the facade - risk management transactions of hedge fund managers, by Selva Ozelli.pdf


Selva Ozelli, an international tax attorney, certified public accountant and international tax editor with the Thomson Reuters Corporation in New York, examines the tax consequences of structured mortgage-backed assets held by foreign hedge funds.

Hedgeweek Special Report on Ireland - Hedge Fund Services 2008.pdf


Hedgeweek Special Report on Ireland - Hedge Fund Services 2008

Hedgeweek Special Report on Canada Hedge Fund Services 2008.pdf


Hedgeweek Special Report on Canada Hedge Fund Services 2008

Deutsche Bank - Exchange Traded Funds - Europe and US Commodity ETF Liquidity Trends.pdf


Commodity exchange-traded funds have become increasingly popular and achieved a relatively high level of market awareness, according to a new report on commodity ETF liquidity trends in Europe and the US issued by Deutsche Bank.

Hedgeweek Special Report Isle of Man Hedge Services 2008.pdf


Hedgeweek Special Report Isle of Man Hedge Services 2008

Deutsche Borse - The Global Derivatives Market - An Introduction.pdf


Derivatives are an important class of fi nancial instruments that are central to today's financial and trade markets. They offer various types of risk protection and allow innovative investment strategies. Around 25 years ago, the derivatives market was small and domestic. Since then it has grown impressively - around 24 percent per year in the last decade - into a sizeable and truly global market with about EUR457 trillion of notional amount outstanding.

Property Funds World Special Report on Jersey Property Funds 2008.pdf


Property Funds World Special Report on Jersey Property Funds 2008

Next Generation Wealth Management.pdf


IBM's latest report on Next generation Wealth Management

Hedgeweek Special Report on Gibraltar Hedge Fund Services 2008 .pdf


Hedgeweek Special Report on Gibraltar Hedge Fund Services 2008

Private Equity Wire Special Report on Guernsey Private Equity Services 2008.pdf


Private Equity Wire Special Report on Guernsey Private Equity Services 2008

Hedgeweek Special Report on US East Coast Hedge Fund Services 2008.pdf


Hedgeweek Special Report on US East Coast Hedge Fund Services 2008

Hedgeweek Special Report on Asian Hedge Funds 2008.pdf


Hedgeweek Special Report on Asian Hedge Funds 2008

Hedgeweek Special Report on South African Hedge Fund Services 2008.pdf


Hedgeweek Special Report on South African Hedge Fund Services 2008

alternative asset adviser march 2008.pdf


alternative asset adviser march 2008

Funds of Alternative Investment Funds - A tax framework.pdf


Funds of Alternative Investment Funds - A tax framework.pdf

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Hedgeweek Special Report on Latin American Hedge Funds 2008 .pdf


Hedgeweek Special Report on Latin American Hedge Funds 2008

9th HFMWeek Survey.pdf


Despite the turbulence in the financial markets in recent months, the ninth HFMWeek Hedge Fund Administrator Survey conducted in association with Advent Software, the industry standard investment management software provider, has reported double-digit growth â€" a positive reflection on the hedge fund industry’s resilience.

Bulgaria - Currency Board Special.pdf


The institution of a currency board in 1997 has brought monetary stability to Bulgaria and helped the government to achieve regular fiscal surpluses, says a new report from analysts Desislava Nickolova of Raiffeisenbank (Bulgaria) and Marti Stelzeneder of RZB in Vienna. But continuing high inflation could delay the country’s hopes of adopting the euro by 2012.

Hedgeweek Special Report on Middle East Hedge Fund Services - 2008.pdf


Hedgeweek Special Report on Middle East Hedge Fund Services - 2008

Hedgeweek Special Report on London Hedge Fund Services 2008.pdf


Hedgeweek Special Report on London Hedge Fund Services 2008

The Case for Absolute Return Investing - Augustus Asset Management.pdf


This article discusses how poor equity and fixed income performance have driven the development of absolute return investment and how it is becoming an established alternative to traditional asset management techniques.

Alternative Asset Adviser Jan 08 release.pdf


First edition of Alternative Asset Adviser (a3), the first online publication and website www.alternativeassetadviser.com that addresses the need amongst UK and European financial advisers for alternative asset product news, analysis and education.

Private Equity Wire Special Report Jersey Private Equity Services 2007.pdf


Private Equity Wire Special Report Jersey Private Equity Services 2007

Hedgewek special report on Cayman Hedge Fund Services 2007.pdf


Hedgewek special report on Cayman Hedge Fund Services 2007

Hedgeweek Special Report on Technical Innovations 2007.pdf


Hedgeweek Special Report on Technical Innovations for Hedge Fund Managers 2007

Real-Time NAV - A paradigm shift for Hedge Fund Industry.pdf


Real-Time NAV improves transparency in Hedge Fund industry taking investor satisfaction to a different level altogether. With a gamut of related real-time functionalities like Equalization, Partnership Allocation and Portfolio Management, the Hedge Fund Industry could benefit from a real-time environment. Elimination of lock-ins is another added feature.

Walker Review 21-11-07.pdf


Guidelines for Disclosure and Transparency in Private Equity

Hedgeweek Special Report on Jersey Hedge Fund Services 2007.pdf


Hedgeweek Special Report on Jersey Hedge Fund Services 2007

Ernst & Young Global Hedge Fund Report 16.10.07.pdf


Ernst & Young Global Hedge Fund Report 16.10.07.pdf

FXaLL White Paper - Algorithmic Trading in the Global FX Market .pdf


This paper highlights how the foreign exchange market is following the trend that is now well advanced in the equities market, where the use of automated, complex trading strategies has helped fuel the rise of ECNs. Hedge funds are successfully applying algorithmic strategies to FX trading to generate alpha,  using many of the same methods they have applied in the equities market and other asset classes. This trend has injected more liquidity into the FX market â€" the world’s largest financial market. The market is further evolving in 2007 as participants seek the optimum technology to implement their strategies,  fuelling the growth of FX as an asset class in its own right.

Hedgeweek Special Report on Dublin Hedge Fund Services 2007.pdf


Hedgeweek Special Report on Dublin Hedge Fund Services 2007

Sir David Walker Report - Disclosure and Transparency in Private Equity.pdf


Sir David Walker delivered his much-awaited consultative report on the UK private equity market, ‘Disclosure and Transparency in Private Equity’, on Monday 16 July. Download a pdf version here.

Hedgeweek Special Report on Isle of Man Hedge Fund Services 2007.pdf


Hedgeweek Special Report on Isle of Man Hedge Fund Services 2007:

Hedgeweek Special Report on BVI Hedge Fund Services 2007.pdf


Hedgeweek Special Report on BVI Hedge Fund Services 2007

Hedgeweek Special Report on Toronto Hedge Fund Services 2007.pdf


Hedgeweek Special Report on Toronto Hedge Fund Services 2007

Spanish Hedge Fund Services.pdf


Hedgeweek Special Report on Spanish Hedge Fund Services - 07

NEF Clean Energy White Paper - Falling behind - Europe's clean energy venture capital and private equity deficit  .pdf


Europe is being left behind in the race for technological leadership in clean energy as venture capital and private equity investors focus on opportunities in the US and Asia.

Hedgeweek Special Report on Asia Hedge Fund Services 2007.pdf


As fast as hedge funds spring up to capitalise on the investment opportunities available in Asia’s dynamic and fast-growing markets, they are being shadowed by providers of services to the industry that see in the region a potential for growth that is not necessarily available in the more mature markets of Europe and North America.  This report investigates this and other issues in more detail.

IMF Global Financial Stability Report - April 2007.pdf


In its latest report on financial stability, the IMF warns that leveraged buy-outs by private equity firms taking advantage of the low interest rate environment are making target companies vulnerable to economic shocks.

Growth in Commodity Investment - risks and challenges for commodity market participants.pdf


The growth in investment in the commodity markets, the emergence of new products and the entry of new participants have given rise to various risks and challenges that need to be addressed by traders and exchanges, according this new study published by the UK’s Financial Services Authority.

The FSA's Funds of Alternative Investment Funds (FAIFs) consultation document.pdf


The Financial Services Authority's much-awaited proposals that would allow retail consumers to invest in funds of hedge funds and other alternative investments sold by firms authorised in the UK.

Hedgeweek Special Report - US East Coast Hedge Fund Services 2007.pdf


The Hedgeweek "US East Coast Hedge Fund Services" Special Report investigates the growth in US hedge fund assets and the increase in pension fund allocations into alternatives. Â This report also assesses the new administration providers that have emerged over the past two years. Â Â Â Please click on the link above to download the pdf version of this report.

Portfolio accounting solutions - Matching the solution to the client.pdf


Advent develops products by listening to our clients. And, in over 22 years of providing innovative technology solutions to the investment industry, we've learned that no two clients are alike. They vary in staff and asset size, asset categories, the types of clients they serve, and in their technology needs. For that reason, Advent has developed three different portfolio accounting solutions to cover the range of client profiles and different needs.

Portfolio Exchange - Integrated portfolio and client relationship management.pdf


The end-to-end solution for accounting and reporting, client service and marketing. Evolving from 20 years of proven, industry leading innovation and reliability, Advent Portfolio Exchange represents Advent's next generation in portfolio management technology. It is the first solution to fully integrate the front office functions of prospecting, marketing and CRM with the back office operations of portfolio accounting
and reporting.

Axys Report Writer Pro - Creating reports to your exact specifications.pdf


Axys is well known for offering an impressive selection of standard reports to meet a wide range of reporting needs. But what if you want to vary a standard Axys report or create a custom report to meet a specific requirement or request from a client, manager, or partner? Advent developed Axys Report Writer Pro for exactly these situations.

Axys - Industry standard portfolio management and reporting.pdf


Advent Software Inc offers investment management firms the comprehensive tools needed to increase efficiency and improve profitability. Advent's solutions streamline, automate, and integrate the investment management process across your entire organization. With the deep functionality of Axys, Advent's portfolio management and reporting module delivers increased productivity throughout your firm.

Moxy for Hedge Funds - Industry Leading Integrated Trading.pdf


Enhance Trading Workflow, Simplify Integration & Trade Complex Derivatives. In today's increasingly competitive hedge fund marketplace, responding quickly to market opportunities is crucial to success. Now, Moxy makes it easier for hedge fund managers to meet today's trading challenges with advanced trading and order management capabilities that deliver comprehensive global instrument coverage, efficient trader workflow, and flexible connectivity to trading partners. Moxy, the industry's most widely used trade order management system, improves productivity, increases efficiency, and ensures flawless communication for traders.

Geneva Workflow Manager.pdf


Much of Geneva's value is its ability to increase your operational efficiency, thereby reducing costs and risk. The Geneva Workflow Manager takes operational efficiency to a new level. It automates and manages your Geneva workflow processes through efficient integration of data and applications. Interfaces are less costly to build and maintain. Manual side processes are eliminated. Workflow is streamlined.

Geneva - Advent's Revolutionary Global Portfolio.pdf


Financial services firms are under tremendous pressure to develop a true Straight-Through-Processing (STP) solution in their operating environments. The main obstacle that prevents firms from achieving true STP is finding the right core portfolio accounting system. Geneva, from Advent Software, is a revolutionary portfolio accounting system built on a unique and powerful architecture that seals the gaps in your STP model and ensures a completely streamlined workflow.

Hedgeweek Special Report on Cayman Hedge Fund Services 2007.pdf


Cayman remains the industry's jurisdiction of choice.  This report investigates what is being done to keep rivals at bay.  

C.D. Howe - Financing Canadian Innovation.pdf


Why Canada should end roadblocks to foreign private equity

Hedgeweek Specia Report on Derivatives Exchanges 2007.pdf


See how are Hedge Funds and merger deals fueling the derivates boom

Performance Characteristics of Private Equity - An Empirical Comparison of Listed and Unlisted Private Equity Vehicles - Matthias Huss University of Basel.pdf


Private equity has enjoyed a growing popularity during the last decades.  While some years ago, this asset class was believed to be an alternative investment for wealthy individuals it is also playing an increasingly important roel in institutional investors' portfolios.

Hedgeweek Special Report - Technological Innovations for Hedge Fund Managers 2007.pdf


The Hedgeweek ‘Innovations in Software’ Special Report surveys the latest front-to-back office software solutions for hedge funds, and funds of hedge funds, highlighting the latest trading, portfolio management, risk management, administration and investor reporting solutions that help define winning hedge funds.

Credit Suisse Tremont Hedge Index - Emeriging Markets Trends in the Hedge Fund Industry Jan 2007.pdf


The emerging markets hedge fund sector has been buoyed by hedge fund investors
that have entered the industry for the diversification benefits, large economic growth
prospects and low interest rates. However, the recent moves by major industrialized
nations to continue raising interest rates along with the uncertainty regarding
the direction of future interest rate movements have led to growing beliefs that the
long period of low cost financing is nearing an end and that U.S. economic growth
is slowing down.

Click on the link for the full report

research paper outlining the framework for the analysis of a new diversifier.pdf


Harry M. Kat, Professor of Risk Management and Director Alternative Investment Research Centre at Cass Business School, London, presents his latest research paper outlining the framework for the analysis of a new diversifier, based on ten simple but effective questions.

Equity markets resist risk and volatility increase after rebounds.pdf


Michala Marcussen, Head of Economic Research, SGAM, outlines the rationale for SGAM’s equity holdings in the latest edition of its ETF News Bulletin. Click here to download the edition.

Hedgeweek Special Report on London Hedge Fund Services 2006.pdf


Hedgeweek Special Report on London Hedge Fund Services 2006

WWF Living Planet Report October 2006.pdf


WWF show the state of the natural world and the impact of human activity upon it. Since then we have continuously refined and developed our measures of the state of the Earth.

Ermitage - UK Pension Funds and Hedge Funds - when will the courting turn into a committed relationship.pdf


Ermitage -  Paul Myners presents  -UK Pension Funds and Hedge Funds - when will the courting turn into a committed relationship

FSA Speach John Gieve .pdf


Speech by SIR JOHN GIEVE DEPUTY GOVERNOR, BANK OF ENGLAND Hedge Funds and Financial Stability

Asia-Pacific Wealth Report October 2006 - CapGemini and Merril Lynch.pdf


The above-average performance of wealth-creating economic drivers, including the primary catalysts of GDP and market capitalization, bolstered wealth accumulation in the Asia-Pacific region. According to the 2006 World Wealth Report,  ive Asia- Pacific markets ranked among the global top 10 fastest-growing HNWI populations in 2005. Two of them â€" South Korea and India â€" ranked first and second among these market leaders. While growth rates for GDP and market capitalization in Asia- Pacific mirrored the global trend of deceleration last year, following 2003’s crest, the region’s economies cooled at a slower rate than those in other parts of the world. India, Indonesia and Japan defied this slowing trend, with GDP expanding at an accelerated pace over 2004.

Joint KPMG IMA TAX REPORT.pdf


The IMA has commissioned KPMG to consider the influence that taxation has on the fund domicile decision, and the further impact this has on the competitiveness of UK funds and the wider UK economy. In preparing this report, KPMG has conducted interviews with 26 investment management groups and four administration companies. The investment management groups interviewed together manage over 60 percent of UK authorised funds as at 31 May 2006.

Global Institutional Demand for Hedge Funds Will Triple to $1 Trillion by 2010, According to New Study by The Bank of New York and Casey, Quirk & Associates.pdf


Global institutional demand for hedge funds will triple by 2010, increasing from $360 billion currently to more than $1 trillion, according to a new study of leading institutional investors, investment consultants and hedge funds released today by The Bank of New York and Casey, Quirk & Associates LLC.

UBS Investment Research - Petrodollars where are they and do they matter.pdf


Is it an accident that US Treasury bond yields (10-year maturities) burst through the 4.50-4.60% highs that had capped the market since 2000 at almost exactly the same time that the US Congress refused to accept the implications of the Dubai Ports World acquisition of P&O? Probably â€" because at the same time too  many other and more cyclical phenomena were unfolding, like the collapse in Japan’s monetary base, the surge in gold and metals prices, the intensification of Fed and other central bank rhetoric and action over inflation risks and financial market disturbances in general.  - released summer 06

Hedgeweek Special Report Middle East Hedge Fund Services 2006.pdf


Hedgeweek Special Report on Middle East Hedge Fund Services 2006 - Crescent moon shines on hedge funds - the Middle East has long been a fruitful source of hedge fund investment.  

FSA Hedge funds A discussion of risk and regulatory engagement..pdf


Rebecca Jones - FSA - transcript of speach about "Hedge funds: A discussion of risk and regulatory engagement."

State Street Global Research Market View 28 September 2006.pdf


State Street Global Research Market View 28 September 2006.pdf

Sabre Fund Management - Why Quant .pdf


Recently, there has been a tendency amongst hedge fund investors to pursue hot new managers. This is justified on the basis that managers are more exciting early on as they are hungrier for returns and that their competitive edge declines with time. This is presumably because managers expand too much and lose alpha as they get too big at the same time during which they lose their competitive edge.

The role of capital introductions in the growth of the hedge fund industry - Deutsche Bank Asian Investor.pdf


The role of capital introductions in the growth of the hedge fund industry

By Ferrel Daste, Director, Deutsche Bank Hedge Fund Capital Group

State Street Global Research .pdf


Leonardo da Vinci said that ‘simplicity is the ultimate sophistication’. That is a phrase many participants in financial markets would do well to heed. The simplest investment and trading strategies often work remarkably well for long periods of time. However, another characteristic of markets is that 95 percent of profits (and losses) are made in 5 percent of time-periods. Following a single investment strategy blindly is likely to be very costly in periods when investor behavior changes. Our Research State Street Global Markets, the investment research and trading arm.

Hedgeweek Special Report on Jersey Hedge Fund Services 2006.pdf


Jersey has made strong progress in positioning itself as a leading funds jurisdiction within the European time zone. By March this year the value of the fund assets under administration in the island had reached a record high of GBP156bn.  Alternative funds â€" many of them established under the successful Expert Funds regime - now account for assets under administration of GBP34.6bn.

New legislation that permits the creation of cell companies through an innovative concept known as the Incorporated Cell Company has been introduced. The Commission has approved its first Shari’a-compliant hedge fund this year, there is plenty of evidence that Jersey is maintaining its innovative approach to the hedge funds industry.

Hedgeweek Special Report on Hedge Funds in Germany 2006.pdf


When Germany liberalised its rules governing hedge funds and taxation of their income at the beginning of 2004 the initiative was hailed in some quarters as a new dawn for the sector. If Germany, with its tradition of conservatism in investment choices and reputation for pernickety rule-making, could embrace hedge funds and funds of hedge funds, the argument went, the rest of Europe and other markets around the world would surely soon be following suit.

With two related pieces of legislation, the German Investment Act and the Investment Tax Act, the authorities sought to put in place the conditions to encourage the growth of a domestic hedge funds industry. At the same time they made it easier for funds to attract customers by increasing the extent to which institutional investors such as insurance companies could invest in hedge funds, and even set in place rules that would allow retail investors to invest in funds of hedge funds.

Hedgeweek Special Report - Isle of Man Hedge Fund Services 2006.pdf


The alternative investment fund services industry in the Isle of Man may not yet be on the same scale as the sector in Dublin, Europe’s largest centre for hedge fund services, but new business is flooding in. There are signs that the island is starting to win mandates from other jurisdictions, as fund promoters look for a higher level of service quality and personal  attention than is available elsewhere.

REPORT OF THE ALTERNATIVE INVESTMENT EXPERT GROUP TO THE EUROPEAN COMMISSION MANAGING,, SERVICING AND MARKETING HEDGE FUNDS IN EUROPE.pdf


In July 2005 the European Commission launched a public debate on possible ways to enhance the
European framework for investment funds. While the debate focuses primarily on retail investment
funds that fall within the existing legislative framework (UCITS), the Commission also notes the
strong growth of the alternative investment market, consisting of inter alia, private equity funds and
hedge funds.

US Court of Appeal Decision.pdf


US Court of Appeal Decision.pdf

Northern Trust Report - The Forced Institutionalisation of the Hedge Fund Industry .pdf


Demand in Europe for hedge fund exposure sees no sign of relenting. In 2003, one in five institutional investors in Europe invested in hedge funds or fund of hedge funds. By 2005 this had increased to one in three.  These inflows are impacting the hedge fund industry right now and this study seeks to explore the consequences that institutionalisation is having on investors and managers alike.

The Bank of New York Hedge Fund Operational Risk Report  June 2006 .pdf


Hedge fund managers have long been aware of the need for investors to conduct thorough due diligence when assessing the merits of their investment strategy. Yet, over the past few years, there has been an increasing focus on operational due diligence due to (1) the increasing inflows of institutional capital into hedge funds and (2) some well publicised fraud cases which have caused losses for even some of the most sophisticated investors in the industry. Regulators are also focusing their attention on hedge funds due to both the tremendous growth of this asset class over the past few years and the increasing demand from retail investors and public pension plans. Operational risk can be described accurately as “risk without reward�, as it is the only risk that investors face that is not rewarded with potentially increased returns.

Hedgeweek Special Report on Dublin Hedge Fund Services 2006.pdf


This report highlights the significant strides made by Ireland in positioning itself as the leading hedge funds services centre in Europe.

Simmons & Simmons Report - Hedge Funds in Spain .pdf


The long awaited Regulations on Collective Investment Schemes (CIS Regulations) (Royal Decree 1309/2005, of 04 November), which came into force on 09 November 2005 set out for the first time a legal framework for hedge  funds (HFs) and funds of hedge funds (FOHFs) in Spain.

Lite Trading Spotlite FTSE 350 Report 15th May 2006.pdf


Weekly trading ideas for fund managers taken from  the FTSE 350 - provided by Lite Trading

Commodities - A Case for Active Management.pdf


In this paper Rian P. Akey of Cole Partners, Chicago, Illinois, USA hypothesizes that the commodities asset class has a number of distinct characteristics which may make it particularly suitable for skilful active managers to find alpha opportunities; and, further, that investors considering the asset class may achieve enhanced returns by investing in actively managed commodity futures and/or actively managed natural resources related securities and derivatives (hedge funds).

Hedgeweek Special Report - Toronto Hedge Fund Services 2006.pdf


Hedgeweek Special Report on Toronto Hedge Fund Services 2006

Hedgeweek Special Report on Guernsey Hedge Fund Services 2006.pdf


Special Report on Guernsey Hedge Fund Services 2006

Hedgeweek Special Report - Asian Hedge Funds 2006.pdf


Asia has evolved very rapidly from a marginal backwater of the global hedge funds industry to a critical and rapidly growing source of new capacity and diversified opportunities. Hedgeweek’s Asian Hedge Funds 2006 special report provides readers with an in-depth look at the current trends and opportunities in Asia, with specialist contributions from the key service providers and advisors operating across the region.

CESR's Advice to the EC on clarification of definitions concerning eligible assets for investments of UCITs.pdf


In the context of the implementation of the so-called UCITs III Directive, the issue has arisen whether or to what extent some financial instruments could be considered eligible investments for a UCITs in compliance with the Directive.

Hedgeweek Special Report on Cayman Hedge Fund Services.pdf


At the end of November the Cayman Islands’ hedge fund industry passed a milestone with the registration of the 10,000th fund to be authorised by the Cayman Islands Monetary Authority since the passage of the Mutual Funds Law in 1993 paved the way for the islands to become the world’s leading hedge fund domicile and a major centre for the servicing of alternative funds.

Eurex Derivative Products in Alternative Investments - The Case for Hedge Funds.pdf


Within the past decade, the growth in global investment markets has spurred the creation of a variety of derivative instruments traded on a number of non-U.S. futures and options exchanges.The development of these exchanges has provided impetus for the development of new financial products such as European based hedge funds. Even in those cases where derivatives may not necessarily be used directly to implement hedge fund strategies, academic research has shown that derivatives can be used in representing fundamental hedge fund return patterns. Most research on the use of derivative instruments to represent hedge fund product returns has focused on U.S. derivative markets. This paper examines the use of various futures and option contracts traded on Eurex and several other European futures and options exchanges in representing the performance of various European based hedge fund strategies. Results show that European futures and option contracts can be used 1) as part of a multi-factor hedge fund replication model to describe the return process of many European based hedge fund strategies and 2) as part of a set of passive systematic “strategy based� trading programs that reflect the return processes of many European based hedge fund strategies.

Eurex Derivative Products in Alternative Investments - The Case for Managed Futures.pdf


This report analyzes the potential benefits to CTAs of incorporating Eurex futures contracts as an investment vehicle. Results indicate that investment in Eurex futures contracts would have improved the performance of a CTA employing a standard momentum-type trading model during the 1992-2002 test period.We also show that these strategies would have improved returns and lowered volatility for an investor holding a typical stock / bond portfolio. Global stock indexes are highly correlated, but the returns from momentum strategies employed in these markets are surprisingly different. In particular, the DAX®, Nikkei 225, and Dow Jones EURO STOXX 50 Futures contracts seem more conducive to trendfollowing strategies than the S&P 500 and FTSE 100 Futures contracts.

Portable Alpha and Portable Beta Strategies in the Eurozone -Implementing Active Asset Allocation Decisions using Equity Index Options and Futures.pdf


While stock picking strategies are in principle meant to exploit evidence of predictability in individual stock specific risk, most equity managers, as a result of their bottom-up security selection decisions, often end up making discretionary, and most of the time unintended, bets on market, sector and style returns as much as they make bets on individual stock returns. In this paper, we show how portfolio managers in the Eurozone can benefit from using derivatives markets to actively manage their asset allocation decisions in a systematic manner. Using a robust econometric process based on a non-linear multi-factor thick and recursive modeling approach, we report statistically and economically significant evidence of predictability in Dow Jones EURO STOXX 50 excess return. These econometric forecasts can be turned into active portfolio decisions and implemented via Eurex equity index futures to generate active asset allocation portable alpha benefits. We also show that adding active sector rotation decisions to asset allocation decisions allows one to significantly lower the portfolio volatility as a result of the benefits of bet diversification. We finally explain how active portfolio managers can benefit from using suitably designed Eurex option strategies as portable beta vehicles. In particular, option portfolios can be used to enhance the performance of tactical asset allocation programs by consistently adding value during the periods of low volatility when timing strategies are known to perform rather poorly. The benefits of active asset allocation decisions reported in this paper originate from the combination of a robust econometric and portfolio process on the one hand, and efficient trading of low cost investible products such as Eurex equity index futures and options on the other hand. This strongly suggests that most long/short managers could use a similar methodology to enhance the performance of their portfolios without having to rely on the alleged superior performance of any specific predictive model.

The Global Reach of Investable Hedge Fund Indices.pdf


In the last few years investable indices have become an important new method of hedge fund investment. They have shaken off the early doubts about hedge fund indices in general and established a clear...

EDHEC - From Delivering to Packaging of Alpha - Illustration from Active Bond Portfolio Management - Using Fixed Income Derivatives to Design Hedge Fund Type Offerings that Better Fit Investors’ Need.pdf


In this paper, EDHEC emphasizes the need for the hedge fund industry to adopt a consumer (investor)-driven approach, as opposed to the current producer (manager) perspective, and we call for the emergence of new types of offering with characteristics better suited to the needs of institutional investors. Using active bond portfolio management as an example, we present evidence that derivatives can be used by managers not only for generating and delivering abnormal performance, but also for packaging such performance in a form that is consistent with the modern core-satellite approach to institutional portfolio management, for which we explore both a standard static version and also a dynamic extension allowing for dissymmetric control of active mangement risk.

Hedge Quest Winter 2005 edition.pdf


The Global Reach of Investable Hedge Fund Indices - in the last few years investable indices have become an important new method of hedge fund investment. They have shaken off the early doubts about hedge fund indices in general and established a clear...