1 / 14

The Uneven Hedge: Navigating Hedge Funds in Canada and Global Markets

Gain insights into the world of hedge funds with Miklos Nagy, a leading expert. Explore the evolving landscape of hedge funds in Canada and globally, including market trends, regulatory challenges, and investment strategies. Learn about Quadrexx Asset Management Inc. and its unique approach to alternative investments. Discover the impact of Principal Protected Notes and the implications for investors. Stay informed and make intelligent investment decisions in today's dynamic financial environment.

monet
Download Presentation

The Uneven Hedge: Navigating Hedge Funds in Canada and Global Markets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Intelligent Investing “The Uneven Hedge” Presentation CIFPS Conference, June 20, 2005

  2. Miklos Nagy, CFA, CFP • CEO and co-founder of Quadrexx • a leading hedge fund expert in Canada • Founder and Chairman of Canadian Hedge Watch Inc. - Canadian leader in hedge fund information / education (www.canadianhedgewatch.com) • Co-author of Canada’s first hedge fund book “Hedge Funds for Canadians”. This book was the number 5 best selling investment book in Canada. Updated second edition is published in June, 2005 by Wiley. • Co-author of CHAIP course (Chartered Alternative Investment Planner) for IFIC (www.ific.ca) and CIFPs (www.cifps.ca)

  3. The Global Hedge Fund Market • Hedge Funds globally: between US$1 and US$1.5 trillion • Fund of hedge funds represent over 35% of hedge funds in terms of AUM • Growth in FOHF is fastest within the hedge fund industry (40% per year since 2000)

  4. The US Hedge Fund Market • Still account to roughly 50% of global hedge fund market • SEC vs FED view of hedge funds • Increased regulation on hedge funds in the coming years

  5. Why Hedge FundsHedge Funds versus Equities/Bonds – Long-Term

  6. Why Hedge Funds Hedge Funds versus Equities/Bonds – Snap Shots

  7. Low correlation to Major Markets: • During distressed market conditions, some Hedge Funds lose their diversifying properties; i.e. Concentration Risk

  8. Correlation switching This is an example of how individual managers change correlations during distress.

  9. The Canadian Hedge Fund Market • Hedge Funds in Canada: AUM estimated to be between $26 billion ($16 billion retail) • Fund of hedge funds represent between 35% and 40% of hedge funds in terms of AUM • Fastest growing hedge fund type used to be (until Portus) in the Canadian hedge fund industry: Guaranteed Notes backed by major banks

  10. The Canadian Hedge Fund Market • Fagmented market depending on: • Type of Product • Province of Residence • Investor Class: • Accredited Investor • Eligible Investor • Investor signing “Risk Acknowledgement Form” • Anybody else

  11. The Canadian Hedge Fund MarketThe Effect of PORTUS • Canada needs more level playing field for hedge funds • The growth in Principal Protected Notes will slow considerably • More regulation is likely

  12. The effect of Principal Protection(based on back-tested data bw. Jan, 1998 to Dec, 2004)

  13. Who is Quadrexx Asset Management Inc.: • Toronto based asset management firm: Managing unique and high quality alternative investment products. • The company was established in March, 2003 by the leaders of Canadian Hedge Funds to build a platform for a fund of hedge funds building on their relationship with Professor Luis Seco (Sigma)

  14. Quadrexx Market Neutral Performance Fund’s Back-Tested Return Statistics(as of February 28, 2005)

More Related