The chair is under the leadership of Lionel Martellini (pictured), scientific director of the Edhec-Risk Centre.

It aims to enhance the understanding of the relationship between alternative investment returns and the returns on underlying fundamental systematic factors, and analyse the implications in terms of the management of portfolios including alternative investments.

Martellini says: 'The ability to rely on robust sophisticated alternative investment modelling techniques is fundamental for alternative investment performance evaluation, as well as for risk management and asset allocation decisions (both at the strategic and tactical levels) of portfolios involving alternative investments. Last but not least, alternative investment modelling is also a key challenge in asset-liability management decisions.'

Patrice Blanc, chief executive of Newedge, says: 'Prime brokerage is clearly one of our most promising areas of growth. In keeping with our evolving leadership role in this field, Newedge is proud to play a leading role in the development of the advanced modelling techniques that can benefit the alternative investments industry.'