If the high-powered hedge fund world is anything to go by, the worst appears to be over for the beleaguered investment industry.
Despite the fact that hedge funds were not to blame for the spectacular implosion of the global financial system, the sector copped more than its share of the fallout, with poor performance, widespread redemptions, gating, suspensions and Madoff combining to make a veritable toxic cocktail.
New Zealand has a small but perfectly formed hedge fund industry. With nearly 30 managers signed up to NZara, the New Zealand Absolute Return Association
, they can proudly point to two years of outperformance against global hedge funds, CTAs or equity markets.
It is possible they look good over the two years of their existence because the index is largely made up of global macro funds, which have done well in that time. Anthony Limbrick, chief executive of Pure Capital and guiding light of NZara, claims Kiwi hedge funds do well because you have to be good to survive so far from the centre of things. The challenge is worth meeting, however, because the lifestyle is so good, he says. For dedicated hedgies, the chance to run money while living in beautiful surroundings near home and family is very attractive.
The only question is, if it’s so lovely in New Zealand, why are there so many Kiwis in London?
UK is bringing out its big guns
The UK is bringing out its big guns in an attempt to shoot down the European Commission’s proposed rules for alternative investment fund managers.
In Monaco, Dan Waters, asset management sector leader at the Financial Services Authority, fired broadsides at several aspects of the directive in a speech at the Fund Forum conference.