Revival of the Swiss Hedge Fund Industry

Date: Thursday, May 13, 2010
Author: Albourne Village

The Swiss hedge fund pioneer BrunnerInvest launched a new fund of hedge funds earlier this month. The fund is part of a new generation of funds of hedge funds investing solely in liquid strategies such as long-short equity and managed futures. The dynamic asset allocation allows a low or negative correlation in equity bear markets whereas in bull markets the participation is significant. The new fund is a liquid subsitute for multi-strategy funds of hedge funds which have been struggling because of liquidity issues during the last downturn. Large Swiss pension funds are among the seed investors. The Head of Center for Alternative Investments & Risk Management of Zurich University of Applied Sciences, Prof. Dr. Peter Meier, considers this successful launch as a clear sign of a reorientating and a strengthening hedge fund industry in Switzerland. It is the first launch since long, Mr. Meier adds.