HedgeCo.net — CHICAGO, JANUARY 16, 2006 – The world’s hedge fund managers are
paying more attention to investing their cash balances, according to a
recent survey by Horizon Cash Management.
Widely seen as highly aggressive, high performance investors, more and
more hedge funds today are closely monitoring and using the best tools
available to invest their cash balances to maximize returns and meet
liquidity demands.
“We expect short-term yields to remain around 5% in 2007 and that
hedge funds and other professional investors will continue to increase
their use of smart, sophisticated cash management tools in the new year
and beyond,” said Robert von Halle, senior vice president at Horizon
Cash Management, a leading independent cash manager for hedge funds and
professional investors and sponsor of this survey.
Nearly half the hedge fund managers surveyed — twice the number
revealed in a survey five years ago — say they are using benchmarks to
gauge returns on cash balances in their portfolios, according to “The
2006 Survey of Best Practices in the Hedge Fund Industry.”
The survey also revealed that the vast majority of funds (87%) said
they monitor cash balances daily, up significantly from the 60% who
reported doing so in the previous survey, which was conducted in 2001.
“With some forecasts for U.S. equities for 2007 suggesting only
single digit returns, maximizing cash investments will be more important
than ever,” said Mr. von Halle.
The Executive Summary of the 2006 survey is now available. Interested
parties can contact Brian Hurley, Horizon’s Senior Director of
Marketing at (312) 335-8500 or email, brian.hurley@horizoncash.com.
About The Survey
The survey is the third major research project Horizon has commissioned
since 1998. It provides a comprehensive examination of industry “best
practices” across a spectrum of investment and operational topics.
Horizon invited representatives from seven enterprises and associations
to submit questions to ensure that the survey touched upon key areas of
best practices. AIMA and MFA, the two best-known industry trade
associations, contributed to the survey, as did Custom House
Administration, DPM Mellon, FIMAT, IMS Consulting and Walek &
Associates.
About Horizon Cash Management
Established in 1991, Chicago-based Horizon Cash Management LLC is a
leading independent provider of customized, short-term fixed income
portfolio management solutions and liquidity management services to
managed fund advisors, hedge funds, wealthy individuals and other
institutional investors worldwide. With more than $3 billion in assets
under management for over 100 accounts, Horizon seeks to maximize cash
balance returns, while handling daily money movements that help its
clients achieve optimal capital efficiency. Horizon is a registered
adviser with the U.S. Securities and Exchange Commission. For more
information, please visit www.horizoncash.com.
Sophie Sophaon l Walek & Associates l Office: 212.590.0522 l Cell:
202.270.4870 l ssophaon@walek.com
