What we learned in particular was that some managers were not staying within their given mandates in trying to generate returns
Miami, FL (PRWEB) December 27, 2012
Gene Sulzberger, Senior Vice President of PRS Investment Advisory, recently drafted a white paper titled, “Hedge Funds in Today’s Investment Environment.” The report gives an overview of the hedge fund market and the how managed account platforms addressed important issues that emerged during the 2008 recession.
“What we learned in particular was that some managers were not staying within their given mandates in trying to generate returns,” said Sulzberger. “For example, investors would ask for their money back and the manager had to say that the money is tied up in a lending strategy and can’t be accessed, sometimes contrary to the given mandate. The transparency of what the underlying managers were doing was not as evident as it should have been.”
In a managed account platform, the fund of hedge funds does not make direct investments in underlying hedge funds, added Sulzberger. “Rather, the fund of hedge funds hires managers to manage a sub-account controlled by the fund of hedge funds,” he said. “Through a managed account platform, the fund of hedge funds manager has more control of the fund’s underlying assets. Some of the issues that had arisen were solved by the fund of hedge funds manager opening and closing all of the sub-accounts and then giving the sub-managers access to trade in the account.”
The read the complete report, please visit: http://prs-efg.com/en/news/
The genesis for the white paper comes from a panel discussion that PRS Investment Advisory hosted in Miami. The panelists included Benjamin Hein, President and Chief Investment Officer of PRS Investment Advisory; Dan Ledbetter, Vice President with Lighthouse Partners; and Timothy Foley, Senior Research Analyst with EFG Asset Management.
About PRS Investment Advisory
PRS Investment Advisory is a boutique Registered Investment Advisor (RIA) and fully-owned subsidiary of EFG International, a preeminent global private banking and investment management firm based in Zurich, Switzerland. PRS is headquartered in the heart of Miami's financial district where we strive to deliver stability and unparalleled service to individuals seeking to optimize returns through customized, unbiased financial advice and comprehensive family office solutions. Through EFG International’s offices and affiliates in more than 25 countries, PRS has access to investment resources around the world. For more information visit: http://www.prs-efg.com.