Top 10 hedge funds business horizons
The top 10 hedge funds made $28bn for clients in the second half of last year, $2bn more than the net profits of Goldman Sachs, JPMorgan, Citigroup, Morgan Stanley, Barclays and HSBC combined, according to new data.
Even the biggest of the hedge funds have only a few hundred employees, while the six banks employ 1m between them. According to the data, the top 10 funds have earned a total of $182bn for investors since they were founded, with George Soros making $35bn for clients – after all fees – since he set up his Quantum Fund in 1973.
hedge-fundsBut John Paulson’s Paulson & Co is closing in on Mr Soros’s fund as the hedge fund to have made most money for investors, after scoring net gains of $5.8bn in the second half of 2010.
The data come from an updated analysis of how much hedge funds actually earn for their clients, calculated by LCH Investments, an investor in hedge funds run by Edmond de Rothschild Group.
Investment banks were frequently compared to hedge funds at the peak of the pre-crisis boom, although many fund managers protested that they were less leveraged than the banks. Comparisons of profits between hedge funds and banks are inevitably imperfect, as the amounts of capital deployed and sources of income vary wildly, but the figures provide a sense of the scale of the funds’ returns.
With agricultural commodity prices at multi-year highs, buying farmland is seen as a more direct way to cash in on valuable crops and to take advantage of long-term appreciation of farm property. As a result, investment funds worldwide have put an estimated $15 billion to $20 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as tangible, strategic assets.
Private funds are not the only ones planning farm investments. As an example, with the purpose of ensuring food security, the state-owned Libyan Foreign Investment Company (Lafico) has set up a company dedicated to invest in agricultural projects abroad, with ongoing attempts to plant wheat in Argentina and Brazil.
However, farmland investments can be tricky and investment funds are scrambling to build up rural expertise. Several investment managers struggle to bridge the gap between Wall Street and the farm track, with a search for farm managers who can deal well with investors and bankers who understand the basics of agricultural operations and farmland issues, including jobs and security of food supplies.
Buying agricultural land requires dealing with not only a global supply chain and lots of regulation, risks and factors that the traditional finance professionals do not know about, but also local links. Many investors also want international holdings, requiring their advisers to navigate different tax and regulatory systems, as well as rules on foreign land ownership. That makes it hard to get access but it also presents huge opportunities. The question is, how do you get into it, how do you access the market
South America is today worldwide considered a top place to buy, lease and manage agricultural lands for profit. Argentina stands out among the other countries for its blessed soil and weather conditions, abundance of natural resources, great infrastructure and the unique possibility of acquiring large extension of productive farmland.
As the land available for agricultural production around the world becomes increasingly scarce, yield will be key to maintaining food supplies in the future. And few agricultural economies can compete with the yields obtained by the Argentine farmers, showing a very high return on investment compared with other major food export producing countries in the world; in most cases, above 6% yield.
Gateway to South America is an experienced company specialized in advice for foreign investors who wish to invest or sell attractive properties in Argentina, Brazil, Uruguay and Chile. GTSA provides Investment Farm Tours for Individuals or Small Groups that don’t want to wait for a formal tour but wish to go now. Everything is arranged for investors from accommodation, private plane, private car, inspections, and where necessary, arrange meetings with appropriate specialists.
The window is fast closing on investment opportunities of a life time. For the simple reason that for the first time in recent history, Argentinean, Brazilian, Chilean and Uruguayan assets in US, UK Pounds and Euro terms offer incredible value. Why else would you see one of the world’s most savvy investors, George Soros amongst others investing so heavily in these countries agricultural sectors.
The Gateway Team – When You are Serious About Property