Recently, investor demand has increased for private equity, hybrid public / private funds and alternative yield strategies such as direct lending, asset leasing and royalty streams. As such, the more complex nature of these strategies makes both pre- and post-investment due diligence far more important.  Swiss investors, like all investors, have behavioural biases, which can lead to thorough pre-investment due diligence, but a more laissez faire approach to ongoing diligence post-allocation. Given that many of those "fashionable" strategies hold assets which can be hard to value and may have asset existence issues (assets are not held with a custodian or

According to last year's Preqin Global Hedge Fund Report, Asia Pacific's hedge fund industry had USD159 billion in AUM and the largest allocator, with USD29.9 billion of committed capital, was China Investment Corporation (China's Sovereign Wealth Fund).  In total, there are an estimated 1,709 active hedge funds being managed in the region, and whereas last year's performance relative to the global hedge fund industry was disappointing (1.76 per cent compared to 5.40 per cent), over a three-year period Asia hedge funds have outperformed the US and Europe, returning 6.84 per cent compared to 5.49 per cent. These facts have not

By Fiona Frick, Unigestion – In a world where returns from traditional asset classes are under pressure, many investors are turning to alternative investments to boost their portfolio's performance potential. However, although an allocation to hedge fund strategies offers potential for attractive risk-adjusted returns and portfolio diversification, the low interest-rate environment has thrown the issue of fees into stark relief. There is little doubt from our experience that skilled hedge fund managers provide a valuable source of uncorrelated alpha for long-term investors. However, advances in quantitative modelling have challenged traditional definitions of alpha and raised the possibility of accessing alternatives

Jabre Capital Partners is one of the industry's best-known hedge funds. Co-founded in 2006 by Philippe Jabre, Mark Cecil and Philippe Riachi, the Geneva-based hedge fund runs a variety of strategies that include: Multi-strategy, Equity Long/Short, Credit Long/Short, Convertible Bonds and Emerging Markets. Liquidity management is very much at the core of Jabre Capital's investment philosophy. Granted, the level of market volatility has been somewhat subdued over the last year or so. The VIX Index spiked following the Brexit vote last June, reaching 25.76, and spiked again in November to 22.51 following the US election, but in general it has

Swiss institutions are looking to diversify their alternative allocations in a bid to improve yield and meet their long-term liabilities. Real estate, private equity and infrastructure funds (and co-investment deals) are a major part of their portfolios with hedge funds still viewed with a degree of caution.  Recently, asset managers like Swiss Life Fund Managers have responded to investor demand by launching the Swiss Life REF European Real Estate Living and Working vehicle, targeting housing, healthcare, office and retail assets. Swiss Life said the fund will invest in "B locations in A cities and A locations in B cities", an approach