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A new world to explore
18 December 2007
?Extension strategies are being touted as the next frontier for securities finance. Will these strategies change the industry? And who will benefit most from 130/30 – custodians, prime brokers or both. Craig MacDonald reports.
Read more:
130/30
hedge funds
pension funds
UCITS III
regulation
custodian
prime brokerage
Craig MacDonald (Chair) Is 130/30 going to change securities finance?
Andrew Wilson, Merrill Lynch When we spoke to European asset managers 18 months ago, there was little or no interest in 130/30 type strategies. But now, pretty much every single one is either looking at launching a product, in the process of launching a product or has just launched one. We are also seeing massive growth in the US. The latest estimates are that there are between $80 and $100 billion invested in these types of strategies, with about 60 to 80 managers running them on a global basis.
Nigel Arthur, JPMorgan We have seen a real quickening of interest. Virtually every request for proposal (RFP) we now see has an entire section on long/short, whereas a year or so ago it was only a question or two. And the RFP questions are very detailed – they want...
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