Generating Alpha in APAC Investments

SINGAPORE, September 04, 2010 (Press-News.org) Interview with: Hubert Keller, Managing Partner, Lombard Odier

The ability to separate alpha and beta returns is important, as it allows specialised teams to focus on their specific skills, says Hubert Keller, Managing Partner at Lombard Odier. It is essential that asset managers concentrate on their areas of expertise. From a sponsor company at the marcus evans APAC Alternative Investments Summit 2010, taking place in Singapore, 27 - 29 October, Keller explores the best alpha generation strategies and shares his outlook for the future.

What should investors look for in an asset manager?

Hubert Keller: After the last two years which have been terribly challenging for the asset management industry, investors should be interested in their asset managers' investment model. More and more investors are looking for asset managers with a strong and specific investment philosophy. Clients do not hesitate to ask us how we differentiate ourselves from our competitors. Our model, based on a fairly strict separation between the manufacturing of alpha and pure beta, has proved to be a compelling advantage. The ability to separate returns is important as it allows separate teams to focus on their specific skill sets. It is essential in the current market environment and we believe places us well for the future.

How can investors create alpha in their portfolios?

Hubert Keller: First of all, their strategic asset allocation will be the key of their future returns. The portfolio construction can be strongly improved by using a risk balanced approach focusing on equally weighted risk contribution rather than the traditional capital allocation framework. We advise a growing number of investors on that crucial subject. Then, they should distinguish beta generation from alpha generation. On one side, they will rely on low cost beta providers and on the other side they will look for specialised asset managers with proven and consistent alpha generation capabilities. With annualised returns near double digit figures over the last 30 months, our absolute return flagship has shown our ability to deliver alpha, by relying on specialised portfolio managers who focus their expertise on what their edge is and who are able to generate alpha regardless of the market directionality. Our alpha generators are managing both traditional and alternative funds, as we consider the much sought after alpha is the same.

What are some of the attractive opportunities to invest in?

Hubert Keller: Clients continue to be interested in macro, long-short and arbitrage strategies in the distress cycle. They are focusing on liquid investment strategies. This has been a very important shift in the market in terms of designing vehicles and strategies which would comply with these greater transparency requirements.

We tend to be focused on liquid strategies, but there are undoubtedly some very interesting assets in the alternative space that require illiquid instruments.

What are some of the upcoming changes that investors need to consider?

Hubert Keller: As far as investors are concerned, the regulatory environment is likely to affect the asset class both on the manufacturing and the distribution side; this issue will be dealt with over the next few months.

The attempt from regulators to set a new composition framework for banks is also likely to affect hedge funds and other alternative assets.


Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division

Tel: + 357 22 849 313
Email: press@marcusevanscy.com


About the APAC Alternative Investments Summit 2010

This unique forum will take place at the Marina Bay Sands, Singapore, 27 - 29 October 2010. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The summit includes presentations on the latest investment trends, optimal asset allocation and portfolio diversification strategies for competitive advantage.

For more information please send an email to info@marcusevanscy.com or visit the event website at http://www.apacaisummit.com/HubertKellerInterview

Please note that the summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world's leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit http://www.marcusevans.com

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