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Global’s Hedge Fund Posts 6.6pc Return

Shailesh Dash, Managing Partner at Global Capital Management, said in 2008, when the European capital markets were exposed to high systemic risks, Global Umbrella Europe Hedge Fund followed a conservative approach by reducing its beta exposure.

By the beginning of 2009 when systemic risks were reduced, the fund shifted to a more prudent strategic approach by investing into hedge fund strategies that can generate alpha while maintaining low volatility, Dash said in an eamiled statement.

He said Global Umbrella Europe Hedge Fund outperformed the Eurekahedge Europe Multi strategy fund of funds index (2.78 per cent) by more than 100 per cent. Eurekahedge represents the fund of funds in Europe.

Global Investment House, which defaulted on most of its debt earlier this year, is among the largest investment companies in Kuwait to face problems amid tight credit conditions.

It is in talks to reschedule its debt.

Dash said the turbulent period witnessed during the last one and half years highlighted the importance of diversification.

“Although the hedge fund industry has decreased in size, the overall decline in value of assets in the hedge fund space is lower than other parts of the capital markets. Hence, hedge funds are now emerging with a larger share of

Joseph Joseph, Partner and head of Hedge Funds & Funds of Funds department at Global Capital Management, said identifying the right hedge fund manager and investing in the most appropriate strategy needed high level 
of skill.

Joseph believes the lack of transparency exhibited by several international managers would increase the importance of local managers among the regional investors.

· issacjohn@khaleejtimes.com