7 Questions for John Rowsell from Man Investments

Latest Editorial Board contribution to All About Alpha, the official CAIA blog.

Get Ready to Update the Database…Again

 
As if everyone’s database wasn’t already in tatters.  Today comes news of the expected consolidation wave that will roll-up the Swiss FOF industry.
 
In an article in Hedgeworld/Reuters, Martin de Sa’Pinto commented that the “you can get there from here” nature of the compensation structure will compell FOFs into one another’s arms.
 

“Many of Switzerland’s smaller fund [...]

What happens when 30% of 50% goes away?

While hard data on the hedge fund industry is hard to come by, it is commonly understood that 50% of single manager money comes from FOFs.
According to Hedgeworld, 30% of that 50% is gone, with significant implications for raising new capital. To name a few:
- consolidating positions
- knock-on redemptions
- legitimate concern over business viability
- limited [...]