Virtual roundtable: Five years yonder… After 25 years of rapid growth and change in hedge funds since the foundation of AIMA, a group of leading players from around the world give their views on the outlook ahead for markets, investors and the industry Compiled by Neil Wilson 25 Years in Hedge Funds Participants James G. Dinan, York Capital Management Loïc Fery, Chenavari Investment Managers Jamie founded York Capital Management in September 1991 and is Loïc Fery is Chief Executive and co-Chief Investment Officer of the Chairman, Chief Executive Officer and a Managing Partner of Chenavari Investment Managers (www.chenavari.com), a group of the Firm. Jamie is a Co-Portfolio Manager of the York Multi-Strategy, regulated asset management companies (London, Luxembourg, York Credit Opportunities, York Event-Driven UCITS funds, York Sub- Hong Kong, Sydney) focused on credit, debt and structured finance Advised ’40 Act Strategy, and Portfolio Manager of the York Total public and private markets. Return funds and is the Chair of the Firm’s Executive Committee. Loïc created Chenavari Investment Managers at the end of 2007. From 1985 to 1991, he worked at Kellner, DiLeo & Co., where he Since then, Chenavari Investment Managers established as one of became a General Partner and was responsible for investing in risk the leading alternative credit managers globally; with approx. $5.5 arbitrage and special situation investments. From 1981 to 1983, billion assets under management (as of July 31st 2015) and over 100 Jamie was a member of the investment banking group at Donaldson, investment professionals, it is one of the largest independent non- Lufkin & Jenrette, Inc. US credit hedge fund managers. Jamie is currently the Chairman of the Board of Trustees of the Chenavari Investment Managers’ clients include institutional Museum of the City of New York, and a member of the Board of investors, pension funds, sovereign wealth funds and family offices Directors of the Hospital for Special Surgery, the Board of Directors globally. Chenavari credit funds steady performance was recently of the Lincoln Center for the Performing Arts, Harvard Business acknowledged with several industry awards, such as Institutional School’s Board of Dean’s Advisors, the Board of Trustees of the Investors, Eurohedge and Hedge Fund Magazine. University of Pennsylvania and The Wharton Board of Overseers at Prior to setting up Chenavari, Loïc was Managing Director, Global the University of Pennsylvania. Jamie received a B.S. in Economics Head of Credit Markets of the investment bank of Credit Agricole. from The Wharton School of the University of Pennsylvania and an He was responsible globally for Credit, Structured Credit & High M.B.A. from Harvard Business School. Yield activities of the bank, including Trading, Structuring and Sales activities. In 2005, he became the youngest Managing Director appointed to the “Cercle des Dirigeants” of Credit Agricole Group. Loïc Fery graduated from the French business school HEC and started his career in credit markets in Hong Kong − where he lived for 4 years − while running the Asian Credit Trading desk for Societe Generale. Loïc is often mentioned as one of the market participants who pioneered the development of European credit markets and one of the only independent asset managers who started in Europe since 2007. He co-authored several books on credit derivatives Luke Ellis, Man Group plc and securitisation topics, focusing on the convergence of credit markets activities and funds/private equity activities. He is also an Luke Ellis is President of Man Group plc (‘Man’), based in London, occasional lecturer on alternative asset management at industry and a member of the Man Group Executive Committee — as conference and business schools. President of Man, Luke is responsible for managing Man’s four Loïc, 41, lives in London and is married with 3 children. As a investment units, Man AHL (‘AHL’), Man GLG (‘GLG’), Man Numeric personal interest, he is the owner of FC Lorient (www.fclweb.fr), a (‘Numeric’) and Man FRM (‘FRM’). Prior to assuming his current role, French Premier League football club. Luke was Head and CIO of Man’s Multi-Manager Business. Before joining Man in 2010, he was Non-Executive Chairman of GLG’s Multi-Manager activities and manager of the GLG Multi- Strategy Fund from April 2009. Prior to this, he was Managing Director of FRM from 1998 to 2008 and one of two partners running the business. Before joining FRM, he was a Managing Director at JPMorgan in London, and as Global Head was responsible for building the firm’s Global Equity Derivatives and Equity Proprietary trading business. Luke holds a BSc Hons. in Mathematics and Economics from Bristol University. 39 Virtual roundtable Participants Sir Michael Hintze, AM, CQS Omar Kodmani, Permal Group Sir Michael is the Founder, Chief Executive and Senior Omar Kodmani was appointed Chief Executive of Permal Group Investment Officer of CQS, one of Europe’s leading credit- in 2014, having previously been its President. Prior to this focused multi-strategy asset management firms. He is also a appointment, he was Senior Executive Officer, responsible for Senior Portfolio Manager. monitoring Permal's international investment activities as well as Prior to establishing CQS in 1999, Michael held a number of senior asset gathering initiatives. Mr. Kodmani is also Director of Permal roles at CSFB and Goldman Sachs. He began his career in finance Investment Management Services Limited and Permal Group Ltd. in 1982 with Salomon Brothers, New York, after working as an Before joining Permal in 2000, Mr. Kodmani spent seven years with Electrical Design Engineer for Civil and Civic Pty Ltd in Australia, Scudder Investments in London and New York where he developed where he had also served in the Australian Regular Army in the the firm's international mutual fund business. Prior to Scudder, Mr. Royal Australian Electrical and Mechanical Engineers, latterly as Kodmani worked for four years at Equitable Capital (now part of a Captain. Alliance Bernstein). He is a CFA® Charterholder and serves on the Michael has significant and wide-ranging philanthropic interests Advisory Board of the CFA® (UK). He holds an M.B.A. in Finance and to consolidate these, the Hintze Family Charitable Foundation (Beta Gamma Sigma) from New York University Stern School of was established in 2005. Since inception, over 200 charities have Business, a B.A. in Economics from Columbia University and a G.C. received funding from the Foundation. Major donations have, Certificate from the London School of Economics. amongst others, provided funding to Trinity Hospice in south London, the Royal Naval and Royal Marines Charity, established the chair of International Security at the University of Sydney and enabled the restoration of Michelangelo’s frescoes in the Pauline Chapel at the Vatican. The beneficial impact of the Foundation on cultural organisations in the UK include the Natural History Museum, the University of Oxford Centre for Astrophysical Surveys, sponsorship of the Sculpture and Medieval and Renaissance galleries at the Victoria & Albert Museum and the provision of vital funding to the Old Vic Theatre in London, where Michael is co-Chairman of the Old Vic Endowment Trust. Michael is a Trustee of the National Gallery, the Institute of Economic Affairs and the University of Sydney UK Trust. Michael was made a Knight Commander of the Order of St. Gregory in 2005, subsequently Knight Grand Cross, and in January 2008 he was honoured as “Australian of the Year” in the UK. In November 2009, Michael and his wife Dorothy received the Prince of Wales Award for Arts Philanthropy. In January 2013, he was made a Member of the Order of Australia for services to the community through philanthropic contributions supporting the arts, health and education. In June 2013, Michael was awarded a knighthood in the Queen’s Birthday Honours for his philanthropic services to the arts. Michael is a fluent Russian speaker. He holds a BSc in Physics and Pure Mathematics and a BEng in Electrical Engineering both from the University of Sydney. He also holds an MSc in Acoustics from the University of New South Wales, an MBA from Harvard Business School and received a Doctor of Business and an Honoris Causa from the University of New South Wales. 40 25 Years in Hedge Funds George W. Long, LIM Advisors Limited Mark McCombe, BlackRock George is the Founder, Chairman and Chief Investment Officer Mark, Senior Managing Director, is Global Head of BlackRock's of LIM Advisors Limited; he brings 30 years of financial industry Institutional Client Business, Chairman and Co-Head of BlackRock experience to the firm. Before he established LIM in 1995, Alternative Investors. Mr. McCombe is responsible for driving George set up and ran the Asian division of what became Barclays the growth of BlackRock's institutional business and alternatives Global Investors (BGI) in 1990, where he served on the Executive presence globally. He is a member of BlackRock's Global Executive Committee for Barclays Group Asia and the Global Investment Committee and Global Operating Committee. Committee in London. Mr. McCombe has had an international career in finance spanning Prior to joining Barclays, George was the Managing Director and more than 20 years. Before joining BlackRock, he served as Chief Investment Officer of Gartmore Asia, and before that head of Chief Executive Officer in Hong Kong, for HSBC. He was also a Korean operations for Indosuez W.I. Carr Securities. He also worked Non-Executive Director of Hang Seng Bank Ltd, and Chairman of in New York and Asia for Manufacturers Hanover Trust Company HSBC Global Asset Management (HK) Ltd. Prior to that, he was (now part of JP Morgan) as an international banking officer. based in London where he was Chief Executive of HSBC Global George is a former governor of The CFA Institute.