Asset Management Awards for Excellence 2014/15: Best Fund Provider – Hedge Fund Platform

Lyxor Asset Management

Andrew Au, managing director and head of LYXOR, Asia ex-Japan

Andrew Au, managing director and head of LYXOR, Asia ex-Japan

To offer a full repertoire of services is no easy feat. From due diligence, selection, on-boarding, to advisory to research, LYXOR has positioned itself as a one-stop shop for private banks seeking to add alternatives to access either its full suite of offerings or selectively choose components.The focus for LYXOR’s head of Asia ex-Japan, Andrew Au, has been the implementation of risk management systems – from stress tests to simulate scenarios or assess deviation from investment policies, to analysing holdings to better manage asset allocation. Engineered with risk aversion at the forefront, its managed accounts platform has weathered storms.

Au tells the story of the LYXOR platform and its endurance of adversity during the Lehman crisis seven years ago. LYXOR’s risk management systems spotted an anomaly in the market. A sudden surge in CDS volumes signalled heightened risk and it managed to minimise prime brokerage losses for its funds on its platform.

Asian HNWIs will remember when they got burnt investing in hedge funds. The marketplace of alternatives manager was a black-box universe with a lack of liquidity. Despite an improved regulatory environment, the risks of directly buying in a critical, and re-emerging, asset class, nonetheless, existed.

“Having an intermediary in between takes away operational risks that are typical to investing in boutique funds and provide more standardised procedures on different hedge fund investment,” Au says.

In their search for not just transparency and liquidity, but also a suite of additional services and a watertight risk management system to enhance alternative offerings, Asia’s gatekeepers selected LYXOR as the industry’s Best Service Provider – Hedge Fund Platform.