HomeResearch & Knowledgeback to HomeFinanceback to Research & KnowledgePacific Alternative Asset Management Company (PAAMCO)back to Finance

Case Study

Pacific Alternative Asset Management Company (PAAMCO)

By Didier Cossin and Inna Francis

21 pages

December 2003

Order this case study

Reference: IMD-1-0197

In a bleak period for the financial industry, hedge funds stood out as one of the few growth businesses. Hoping to obtain absolute returns that are uncorrelated with broader stock market movements, while further diversifying their portfolios, institutional investors embraced this alternative asset class. However, as the number of hedge funds has burgeoned so did the challenge of investing in them. Typically cautious, institutional investors have been loath to leap into an area outside their core competences and started turning to a group of intermediaries known as fund-of-hedge-funds managers, such as PAAMCO, that specialize in identifying the best hedge fund managers for their clients. The case explores the issues faced by fund-of-hedge-funds managers when selecting the hedge funds to build either standardized funds or custom portfolios for their clients. In a broader sense the case provides for discussions on what hedge funds are, what investment strategies they use and who their investors are as well as exploring the general aspect of asset pricing portfolio theory.

Keywords

Risk Management

Settings

United States of America
2000

Type

Field Research

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Impact orientation and venture capital financing: The interplay of governmental, social impact and traditional venture capital

In addition to traditional venture capital (VC), governmental VC and social impact VC investors have emerged as alternatives to fund entrepreneuria...

Finance Venture Capital Social Innovation

By Valentina Lo Mele, Anita Quas, Patrick Reichert and Stefano Romito

in Finance Research Letters

October 2024, vol. 68, 105987, https://doi.org/10.1016/j.frl.2024.105987

Article

What China’s fading appeal to foreign investors means for its economy

For years, the sheer size of China’s economy made it an irresistible magnet for foreign investors, with many – including sovereign wealth funds fro...

China Finance Global Business

By Simon J. Evenett

in The National

16 August 2024

Article

How do big-ticket US subsidies affect foreign investment?

US President Joe Biden once described the Inflation Reduction Act (IRA) as one of “the most significant laws” ever enacted due to its massive inves...

Future ready? A methodical approach will repay you

Singapore-based DBS bank was being shaken by nimble competitors and needed to change fast. CEO Piyush Gupta knew spending big on technology wasn't ...

Agility Business Transformation Change Management Competitiveness Decision Making Disruption Finance Future Readiness Innovation Organizational Change

By Howard H. Yu

in I by IMD

Article

Swiss banking: In search of a secure future

In light of the Swiss Federal government's report following the Credit Suisse debacle, how can the Swiss banking sector regain its reputation for s...

Finance Future Readiness

By Salvatore Cantale, Peter Nathanial and Ludo Van der Heyden

in I by IMD

19 July 2024

Article

Why multinationals are betting on India - Richard Baldwin

As the world’s largest democracy prepares to overtake China in terms of economic growth, it offers a huge investment opportunity, explains IMD’s Ri...

Competitiveness Finance

By Richard Baldwin

in I by IMD

8 July 2024

Case Study

SIX Payment Services (A): Disruptive innovation in the European payments industry? (Spanish translation)

The payment processing industry in Europe had operated in largely the same way for decades. A standard system of financial processing and clearing ...

Disruption Finance

By Michael R. Wade and Christopher Zintel

Article

A methodical approach to change will repay you with interest

Singapore-based DBS bank was being shaken by nimble competitors from China, and it needed to change fast. But CEO Piyush Gupta knew that blowing a...

Future Readiness Finance Competitiveness Disruption

By Howard H. Yu

in I by IMD Magazine

June 2024, no. 14, pp. 76-79

Article

Will activists bring the curtain down on corporate arts funding?

A rise in climate change protests against leading arts institutions spells trouble for the future of corporate sponsorship. Companies and cultural ...

Sustainability Finance

By Michael Skapinker

in I by IMD Magazine

June 2024, no. 14, pp. 33-35

Article

Specialization in action: inside a Specialist VC’s playbook for success

Evgenia Plotnikova, General Partner at Dawn Capital, discusses whether VCs should broaden or narrow their focus in years to come

Venture Capital Finance

By Karl Schmedders and Raphaël Jean Luigi Grieco

in I by IMD

14 June 2024

Impact orientation and venture capital financing: The interplay of governmental, social impact and traditional venture capital

By Valentina Lo Mele Anita Quas Patrick Reichert and Stefano Romito
in Finance Research Letters October 2024, vol. 68, 105987, https://doi.org/10.1016/j.frl.2024.105987

Summary

In addition to traditional venture capital (VC), governmental VC and social impact VC investors have emerged as alternatives to fund entrepreneuria...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Venture Capital

Social Innovation

Browse all topics

What China’s fading appeal to foreign investors means for its economy

By Simon J. Evenett
in The National 16 August 2024

Summary

For years, the sheer size of China’s economy made it an irresistible magnet for foreign investors, with many – including sovereign wealth funds fro...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

China

Finance

Global Business

Browse all topics

SIX Payment Services (A): Disruptive innovation in the European payments industry? (Spanish translation)

By Michael R. Wade and Christopher Zintel
Case reference: IMD-7-1543-ES ©2021

Summary

The payment processing industry in Europe had operated in largely the same way for decades. A standard system of financial processing and clearing ensured a steady profit pool for most of the players. However, the payments system in Europe was facing threats on a series of fronts, including changing regulation that shifted power away from some incumbents, lower prices, new competitors, and more demanding customers. One of the region’s large players, Swiss-based SIX Payment Services, needed to decide how to respond to these threats.

Reference IMD-7-1543-ES

Organization Six Payment Services

Industry Finance and Insurance, Financial Services

Available Languages Spanish

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Finance

Browse all topics

A methodical approach to change will repay you with interest

By Howard H. Yu
in I by IMD Magazine June 2024, no. 14, pp. 76-79