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6th Financial Community Update
Hedge Funds’ Information Management
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The 6th Financial Community Update addressed the topic
of hedge funds. What strategies pursue hedge funds? How should companies behave? Alexander M. Ineichen, Head
of Alternative Investment Strategies Research, UBS Investment Bank, introduced the subject. Subsequently, Bernhard
A. Fuchs, Head Investor Relations of Holcim, and president of the Swiss Investor Relations Association, discussed
with Urs Wietlisbach, president of the Board of directors of Partners Group.
During his introduction Alexander M. Ineichen explained the different types of hedge funds and their corresponding
investment strategies. In addition to that, he gave a remarkable description of the global dissemination and
the massive sums, which are invested in these specific assets. Alexander M. Ineichen also specified, how the
situation has evolved in the last 25 years. In the nineties the diversified hedge fund portfolios averaged a
return of 18.3%. Since the beginning of 2000 until today, the revenue dropped to 6.5% annually. This downturn
caused a higher demand of transparency by private as well as by institutional investors.
“What information requirements have hedge fund managers?” The answer by Urs Wietlisbach was clear:
“Companies have to take their time to communicate actively and openly. The time expenditure is worth while.”
Certain hedge fund managers conduct fundamental research. They ask about quantitative and qualitative data in
order to be on the lead, thanks to more information. Consequently, hedge funds do not only pursue a predominantly
short-term investment strategy. A cooperation is hence by all means remunerative.
Some hedge funds made the headlines, due to the loss of customer’s money. As Alexander M. Ineichen points
out, it has to be kept in mind though, that the losses were marginal compared to the dimension of the market.
The discussion pointed out, that today an added control and a heavy activity are to be registered. Hedge fund
managers contribute to this situation. But also pension funds and private investors want to be able to exert
their control rights. The future will show, how strong shareholder democracy and activism are shaped by the
behavior of hedge fund managers.
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