Thursday, June 26, 2008

Stock Market Crash - A boon for Asset Managers

Corporate Pension funds are huge accounts and asset managers are more than eager to secure their mandate. Rising markets has always made it difficult to secure a mandate in light of returns and flexibility they get for handling the account. Also with rising markets corporates were confident enough that they can get returns through their own strategies without paying hefty fees. Stock market crash in some way has worked as a trigger for corporate funds to buck this trend and rely on the professionals to get returns on their money.

A recent news of Cadbury adds hedge fund sweetener is one of the incident where mandate has been given to two hedge fund managers. So for hedge funds, if their business has survived the current turmoil, this is the fish they can grab in depressed markets.


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