Former RBA boss Glenn Stevens takes on new role at hedge fund
Glenn Stevens is much sought after by hedge funds, with the former Reserve Bank governor joining hedge fund investor NWQ as a member of its investment committee.
A few weeks back, Stevens also took on an advisory role at Ellerston Capital's macro hedge fund.
Taking on board Stevens is part of the Perth-based NWQ fund’s move to attract offshore investors to the Australian hedge fund scene.
"Glenn will add important insights with regards to global economic conditions, the state of risk factors that will influence our strategy allocations and ultimately our manager selections," Jonathan Horton, the managing partner of NWQ Capital Management, was quoted as saying by The Australian Financial Review.
Horton, who has known Stevens for 25 years, said the former RBA boss would focus on "top down" or macro analysis.
"Glenn is most interested in this type of work with those few he has a high level of comfort with."
Earlier this year, it was also announced that Stevens would advise the NSW government on ways to improve housing affordability which Premier Gladys Berejiklian has said was one of her priorities.
NWQ has set up an office in New York to cash in on the growing interest in Australian hedge fund managers from US family offices, pension funds and insurers, the AFR reported.
It has also recruited former Regal Funds Management chief operating officer Stephen Baldwin to the investment committee.
Horton was optimistic about US groups showing interest in Australian hedge funds.
"There is strong international interest – US-centric – in Australian-based hedged equity managers, particularly market neutral," Horton said.
"Given the contestable size and relative poor performance of many US and other international hedged equity funds we become an attractive solution for those investors wanting a fiduciary centric portfolio or fund of funds."
Several Australian hedge funds already have significant or majority investments from US and other international investors, he added.
Many of the nation's top-performing hedge funds have become frustrated at the lack of interest from domestic investors while emerging funds have taken time to attract funds even if they have delivered consistently strong performance.