Monday, September 20, 2004
LJH Study on French HF Investors
U.S. study finds French stick with safe hedge fundsFri September 17, 2004 02:59 PM ET BOSTON, Sept 17 (Reuters)
A U.S. hedge fund group, studying conditions in international markets, found that French hedge fund investors tend to be relatively conservative, sticking mainly to three types of investment strategies.
France ranks as one of the largest retail fund markets in Europe and the country's high savings rate -- around 15 percent -- has made the market attractive for banks eager to sell new products.
However, the new study -- a summary was released on Friday before the entire report will be published next week -- finds that French investors tend to stick to hedge funds specializing in fixed income arbitrage, convertible arbitrage and managed futures. The report was compiled by LJH Global Investments.
"These strategies represent the common skill of the French fund managers who have a fixed income investment culture with a strong background in quantitative trading," the report said.
In convertible arbitrage funds, managers buy a convertible bond and sell some of the underlying stocks short and the investment is generally considered to be a safe option.
Also the report found that banks control the lion's share of the market, distributing about 70 percent of products.
A U.S. hedge fund group, studying conditions in international markets, found that French hedge fund investors tend to be relatively conservative, sticking mainly to three types of investment strategies.
France ranks as one of the largest retail fund markets in Europe and the country's high savings rate -- around 15 percent -- has made the market attractive for banks eager to sell new products.
However, the new study -- a summary was released on Friday before the entire report will be published next week -- finds that French investors tend to stick to hedge funds specializing in fixed income arbitrage, convertible arbitrage and managed futures. The report was compiled by LJH Global Investments.
"These strategies represent the common skill of the French fund managers who have a fixed income investment culture with a strong background in quantitative trading," the report said.
In convertible arbitrage funds, managers buy a convertible bond and sell some of the underlying stocks short and the investment is generally considered to be a safe option.
Also the report found that banks control the lion's share of the market, distributing about 70 percent of products.
# posted by Tom @ 9:46 AM 
