To the eponymous Ivy Club, at the heart of London’s West End, for an evening of private dining in association with Lombard Odier. 10 carefully selected hedge funds from the network joined us for the roundtable evening to explore connections over three courses of the finest Ivy fare. On hand to talk on the Swiss bank’s outlook for hedge funds and the wider economy alike were Head of Hedge Fund Research and Fund of Funds, Christophe Khaw and European Private Banking CIO Stephane Monier, two men very firmly in the know.
The evening kicked off in the Ivy lounge where guests were welcomed with a chilled glass of wine to tick off the stresses of the day, a welcome start to the evening. Ushered into our private dining space shortly afterwards to take seats, Christophe and Stephane had the floor and the undivided attention of the mangers around the table. We spent an informing yet convivial half an hour, over delicate and delicious starters from the summer menu, delving into the vagaries of the fund of fund landscape in 2014 and how the wider economic view of the bank was informing its investment approach. Fascinating and invaluable interaction for a hedge fund of any size or age.
As always HedgeBrunch seeks to hosts events with content on a personal level as much as professional and conversation turned to the topic of managing one’s own capital as well as that of the fund. Skin in the game is often cited as a key point of strength for any asset manager – but to have all one’s capital involved in one’s own fund is unusual – so an engaging discussion on the options for external investment ideas and vehicles unfolded (Disclaimer – HedgeBrunch does not provide investment advisory).
Stephane Monier, of Lombard Odier since 2009, has adapted the asset allocation model for private clients of the bank and now uses a risk-based approach. They have built “What is the maximum loss you can tolerate” model rather than the traditional “How much money do you want to make?” approach. A familiar angle in hedge fund asset management but it’s highly refreshing to see this in a private client environment where undifferentiated vanilla portfolio offerings are somewhat ubiquitous. It bodes well for the private client and hedge fund relationship too, an area which has historically seen quite some friction, as private investors are becoming savvier to innovation and less trepidatious of advanced asset management approaches.
Having uncovered some engaging topics and with threads reaching across the table on their various aspects, we continued on, enjoying the endeavours of our host venue. Classic main dishes of Lemon oil poached & roasted salmon and Lancashire loin of pork with summer roots, apple relish and cider sauce more than satisfied the collected alpha generators present.
The evening far from over, coffee and petite fours paved the way for a move back to the welcoming club lounge. What has to be one of the most perfect whiskey-sours in London kept those with stamina talking into the night, into that under-explored but all important place where work connections become friendships – exactly where we like to be.
Event Guests Included
Lombard Odier Private Bank – Lombard Odier FoF – LNG Capital – Trium Capital – Altiq – Qbasis – Castillium – Cheyne – GLO Capital