Reuters – The British arm of asset management group Aviva Investors is betting that investor interest in hedge fund-style products will survive the credit crisis and rebound once market turmoil abates.
Paul Abberley, UK CEO, told Reuters Aviva Investors would boost its high alpha and absolute return business in the coming months and expand its investment team across the board.
Hedge funds and similar products have come under scrutiny as investors question how modest performance in a market turmoil chimes with the high fees charged by the industry. Hedge funds claim to be able to generate returns in bad times and good.
Abberley, CEO of Aviva’s London office since the beginning of August, said: "We believe clients will look for more higher alpha (excess returns) products than in the past and we need to be able to offer excellence in those areas."