NEW DELHI, June 13, 2014 /PRNewswire/ --
Exhilway has exited "Risky" hedge fund business by reassigning the operational rights to a large private investor group in Australia in lieu of market linked variable royalty, payable every year by the investor group. The deal will not result in any instantaneous cash flows for Exhilway.
Exhilway, which was a leading profitable global hedge fund player since 1974 with a highly advanced automated trading systems, is now looking to set up new market neutral, less risky hedge funds focusing on the emerging markets of Morocco, Hungary, India, Brazil and China along with the developed markets of United States and Europe.
The management has inveterate that managing risky hedge fund strategies was getting tough due to impulsive market conditions. Exhilway, which was a leading player in the commodities markets, marked its exit to focus on better trading opportunities. The falling commissions and high performance pressure is another reason for the exit.
Exhilway now plans to focus on investing in global indices and a few handpicked stocks with a focus on long term appreciation rather than mere trading. Exhilway plans to launch several private equity funds, mutual funds and exchange traded funds to attract global investors. The investors will have an option to invest online in the funds distributed by a broker dealer in their respective area. Also, Exhilway is in final stages of finalizing fund administrator for its proposed funds. The management is planning a mega launch of new product line, predominantly focusing on index funds.
The index funds are generally considered to be a low cost funds since they carry negligible expenses of commissions and spreads. The index funds in a long term generate better returns than an actively managed portfolio; the transactions are believed to be transparent and investor can keep a better check on their returns. The index funds are globally endorsed by investment experts like Warren Buffett, Charles Schwab and several Nobel laureates. The index funds has seen global investments to the tune of US $2.5 trillion in the last three years.
After this deal, the global AUM of Exhilway has come down to US $21.70 million catering to less than 10 high net worth investors from UAE. However, undisclosed pension funds are committing to invest up to US $3 billion in the newly planned index strategies. The talks are in the final stages and may be announced by the last quarter this year.
Exhilway, which was looking to exit actively managed hedge fund business since the last two years, is now currently left with business interests in real estate advisory and private equity. Exhilway, which has served over 180,000 investors in its operational history of forty years, has loyal investor base of 65,000 which it plans to invite on its proposed investment platform. Exhilway Link is a planned alternative trading platform pending for launch this year.
Exhilway plans to build an AUM of US $10 billion in the next three years. Exhilway, which currently has over 160 employees, plans to double the headcount by the end of this year. The industry experts believes that exiting active hedge fund business is a well-planned decision as the hedge fund industry focusing on commodities is bound to make losses in the coming years due to razor thin margins and abundant pressure to perform.
Exhilway may also replace Ajay Garg who is the current Global CEO.
For more information, visit www.exhilway.com.
Primary Media Contact : David Jones, [email protected], +18565332358, Media Representative, Exhilway Global
Secondary Media Contact: Rajiv Khandelwal, [email protected], +91-120-4804938, Media Representative, Exhilway Global
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