Citi Private Bank: Ultra high net worth clients' skepticism of hedge fund investing may soften

Hedge Funds
by trusted insight posted 11years ago 1043 views
Frank Frecentese is Global Head of Hedge Fund Investments for Citi Private Bank. Frank oversees hedge fund research and manager selection for the Citi Private Bank platform, and his business is focused on direct investment in single-manager hedge funds and custom hedge fund portfolio construction and management. The Citi Private Bank hedge fund platform business manages roughly $4bn globally in single hedge fund investments and custom hedge fund portfolios for ultra high net worth clients. Frank and his team believe in hedge funds as a key piece of the puzzle in a “holistic” multi-asset class portfolio. In this Opalesque TV interview, Frank speaks about a paradigm shift within hedge fund investing where hedge funds’ performance has shifted from an absolute return vehicle to a relative return vehicle, but remains relevant for investors when put into customized and balanced portfolios, along with other asset classes and investment styles. Despite a lack of absolute performance in the last few years, hedge funds still deserve a place in wealthy investors' portfolios, particularly given their ability to protect capital and preserve wealth, which are among the highest priorities for ultra high net worth investors. While Frank feels institutions have recognized this shift in paradigm, he observes that ultra high net worth clients have remained highly skeptical of hedge fund investing since 2008. But this is a trend Frank believes will change as more investors come to recognize the new relative return paradigm. Learn about: · Hedge funds as part of a “holistic” multi-asset class portfolio · Citi Private Bank’s four “Investment Labs”: Finding the right hedge fund pieces · Citi Private Bank’s hedge fund platform today · How to deal with the compression of alpha · Achieving low beta, high alpha through concentrated portfolios · Meeting Citi Private Bank’s approved manager list requirements · Evaluating investment strategies and operational risks Francis X. Frecentese is Global Head of Hedge Fund Investments for Citi Private Bank. Frank oversees hedge fund research and manager selection for the Hedge Fund Research and Management Group (HFRM) within Citi Private Bank’s Managed Investments group. HFRM manages over $4bn globally in single hedge fund investments and custom hedge fund portfolios for CPB’s high net worth clients, and has offices in New York, London, Singapore, Hong Kong and Brazil. Prior to joining Citigroup, Frank was Global Director of Manager Research at Graystone Research, a hedge fund advisory group within Morgan Stanley that supervised hedge fund investments for the firm’s private clients. Previously, Frank practiced law with Stroock & Stroock & Lavan and Viacom International and, thereafter, worked on the European Hedge Fund Desk in New York at Goldman Sachs. He holds a B.A., summa cum laude, from Fordham University, a J.D. from NYU School of Law, and an M.B.A. from The Wharton School.

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