Where are the Edhec Hedge Fund Diversifier Benchmarks situated in SG CIB/Lyxors strategy?
Christophe Miann: Edhec has decided to use the Lyxor Managed Account Platform for their investable Benchmarks as a direct consequence of their research regarding hedge fund failures. Their latest study concludes that managed account platforms such as Lyxor’s substantially mitigate operational risk, which accounts for 85% of hedge fund failures. The main objective of the Edhec Hedge Fund Diversifier Benchmarks is to take advantage of the diversification effect of alternative investments by offering clients optimal diversification of their traditional portfolios, while benefiting from stable returns and reduced volatility. Therefore, the two FCPs constitute a milestone in the development of specific solutions for institutional investors, who want to optimize the risk/return profile of their asset allocation with hedge fund investments, provided they respond to their needs for risk-control, liquidity and transparency. The two FCPs, combining the expertise of Edhec with the benefits of the
