HEDGE FUND DEBATE
Sygnia plan ‘simply to get big fees out of alternative fund’
Sygnia CEO Magda Wierzycka certainly knows how to galvanise an audience, be they supporters or detractors. For those who believe the hedge fund industry has been a money-making racket for its managers, and not its clients, her declaration last week that hedge funds would be off the Sygnia menu was applauded. For the hedge fund managers who have consistently beaten the market, after fees, for a decade or more, it was part of a PR campaign designed to draw attention from Sygnia’s decision to replace its fund-of-hedge fund offerings with a fund of alternative investments, which will attract fairly high fees of its own. Among others, this fund will consist of so-called "new age" funds such as fourth industrial revolution investments, technology funds to take advantage of the Faangs (Facebook, Amazon, Alibaba, Netflix and Apple) and a small allocation to cryptocurrencies and blockchain technology companies. Arguing that stock selection and long-short strategies employed by hedge fund man...
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