In such uncertain times, a re-assessment of active management, what that means and what it should achieve, has become a central issue for many asset managers, a panel of experts agreed at the Cayman Alternative Investment Summit (CAIS), which is taking place in the Cayman Islands this week.
In a session entitled 'Recalibrating active management in a new world' the panellists examined the challenges faced by the investment community in a troubled world and how active management has become increasingly important as a result.
Active management should be all about the search for value and growth and achieving the best risk-adjusted returns, the panel said.
The panellists comprised Natanaël Benzaken, CEO of Lyxor Asset Management; Sumit Handa, head of insurance allocation at Insight Investment; Kevin Butler, partner and head of Cayman Islands office Conyers Dill & Pearman; and Mark Warner, interim CEO and CIO of UTIMCO. The session was chaired by David Rhydderch, global head alternative fund services at Deutsche Bank.
Butler also noted during the session that there has been a rise in the formations of private equity vehicles on Cayman, partly as a result of it being increasingly difficult for new managers to start new hedge funds because of rising regulatory costs and other barriers to entry.
They also noted that the advent or artificial intelligence and machine learning will revolutionise the industry but that leveraging this technology should become part of the toolkit of every investment manager.
Now in its fourth year, CAIS is a not-for-profit event hosted by Dart which uses its experts and expertise to benefit philanthropic efforts both in Cayman and internationally. Its keynote speakers this year included Arnold Schwarzenegger, the former Governor of California, Captains Mark & Scott Kelly, former NASA astronauts & retired US Navy Captains; and retired DEA agents Stephen Murphy & Javier Pena, responsible for apprehending the infamous drug lord Pablo Escobar.
CAIS 2017, Cayman Islands, Active management