Hedge Funds’ Foreign Holdings

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Nowadays preeminent perception is to get utmost profit or return in diminutive time. Therefore hedge funds provide exceptional benefit to those, who anticipate smart returns over short period of time.

Investing in hedge funds is beneficial as money is invested in gamut of different instruments, which are more flexible in its investment strategies and are professionally managed. Though American hedge funds are well known but change can be seen conspicuously in terms of returns. According to the survey hedge funds in Australia has been growing at the colossal pace and assets tripled in less than two years. “Our regulatory environment and transparency helped rapid growth in Australia, said chairman of Australian chapter of the AIMA, Kim Ivey.

There are some funds where good returns can be anticipated with less exertion.

The Man funds

The best fact about Man funds is that each fund is “open ended”, means investor can withdraw and deposit anytime. Man funds invest in emerging markets, particularly where market is boosting hastily for instance Singapore, China and Hong Kong.

Four innovative Man funds have produced remarkable returns since 2007 which are Man AHL Alpha, Man AHL Gold, GLG and the Gold Investment.

Man AHL Alpha (AUD)

AHL gained recognition as most renowned force in Money Market today. It is managed proficiently to produce admirable results even in declined market.  AHL is best suited to small investors as from 27 June, 2011 minimum investment has been reduced to $ 5,000 from $ 25,000. Moreover from 1st June, 2011 a management fee has been reduced by 20%. Since October, 1995 AHL has produced annual return of more than 14% p.a.

Contrast has been shown below, by comparing performance of AHL alpha fund with other global markets since October 1995 to September 2011.

Source Man Investments.

It is apparent from the graph that AHL has been able to fabricate annual return even in declined market.


GLG FUNDS                                       

These funds are primarily invested in emerging markets which is composed of dedicated team and has experience in respective markets over a decade.


Man AHL Gold (AUD)

Man AHL Gold is a combination of AHL diversified program and Gold investment. By using AHL diversified approach this fund take advantage of bear and bull markets. Secondly, investment in Gold takes advantage from the moving value of Gold. Meanwhile it gives facility of deposit and withdrawals on weekly basis.


The Gold Investment

Gold Investment fund has been launched in March 1996 and it trades in movement, caused by the value of Gold. In Short term precariousness is generally higher; therefore Gold investment is highly suited to long term investors.

Underneath is the performance of Gold market since March 1996 to September 2011

Source:  Man Investments


As cited above, unpredictability could be key factor and as a matter of fact it may have periods of performing below yardstick, if considered on short term basis.


Man AHL Diversified (AUD)


This fund has been launched in 1997 and it also gives advantage of deposit and withdrawals on weekly basis by diversifying its investment to almost 300 international markets.

Underneath is the comparison of AHL diversified fund with global stock markets since March 1996 to September 2011

Source:  Man Investments.

Graph shows AHL Diversified ripped constructive returns and unrelenting escalation in declined market.


Past performance illustrate that it has low correlation and it has produced astonishing returns even in worst circumstances.


Certitude Global Investments / HFA Holdings:-


HFA holdings Certitude Global Investments is a market leader with assets of more than $5.9 billion dollars. HFA has sustained unremitting growth and exposed enormous returns after strategic alliance has been made with Apollo Global Management. In the last financial year HFA successfully amplified its revenue by 6% to $67.97 million by significant diminution in EBITDA to $19.68 million. It received over 400 million dollars of pension fund at the end of September 2011 and achieved cash flows of more than $23 million dollars which demonstrates strength in liquidity of HFA holding.


Japanese hedge funds produced best results in five years said Eurekahedge, Singapore-based fund tracker on Monday. Returns in five years mounted more than 6.5% in 12 months with assets augmented more than $18 million. Almost $70 billion are now managed by Asian hedge funds and Assets under management are growing at rate of 35%. In a comparison to North American hedge funds, Japanese hedge fund index is up by 4%. “The environment is finally ripening for hedge funds,” says Masaru Kontani, MD at Tokyo-based Hachibushu Capital Ltd.

In past Japan use to invest heavily in low risk bonds and government based bonds, but returns were unsatisfactory or below par. Primarily, predicament was pragmatic with the allocation of funds at the right place. According to the recent survey Japanese institutions are trying to conduit this gap by investing more in hedge funds. Many pension funds corporate institutions are investing and expecting higher returns for this year.

Conclusion: – As Japan and Australia anticipate higher returns in hedging, there are great opportunities to foresee better prospect in money markets. Government institutions are inclined to change their strategy from low risk based bonds to higher returns spawned by hedge market in short term. Past performances clearly imply opulence of hedging across Asian pacific markets who are trying to lax regulatory frameworks and by diversifying in different instruments to minimize risks. More flexible criterion has been established by plummeting; minimum investment and generating affirmative returns in short term.

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