An Analysis of Strategy Used by Barclays Capital for Its Hedge Fund Returns

Pages: 10 (2853 words) Published: October 6, 2010
An analysis of strategy used by Barclays capital for its Hedge fund returns and measures used by it to gain the trust of their investors

Table of Contents:

1. Aims and objective
2. Introduction
3. Justification of study
4. Literature review
5. Hypothesis
6. Methodology
7. Conclusion
8. Bibliography

Aims and objectives:
* An analysis of the strategy used by the Barclays bank to get high returns from its hedge funds * A critical review of how they retained their investors during recession * Analyzing the strategies that could increase the returns to maintain their investors investment safe


This is a research that we are going to see about the strategies that are used by Barclays capital in its hedge funds. Barclays capital is a part of Barclays banking group, banking is the main source of business for its. In Barclay’s capital hedge funds plays an important role in the performance. It has the highest turnover in volume. In this research we are going to focus on the strategies that are adopted by Barclay’s hedge funds to get high returns. Barclays being an international concern has to concentrate more about his hedge fund customers. Normally, hedge fund customers are of more valued customers. In this research we are going to concentrate on how the Barclays capital is investing its hedge funds to get high returns and the rate of return they get. And the proper recommendation or suggestion for their development strategy to get more returns.So, that they can get competitive advantage than other investment bankers. The process involved in the hedge funds and the suggestion and recommendation after the research to get higher returns. The main source of the hedge funds to get returns is stock market. So, the fund managers have to concentrate more about the stock market movements and their attitude towards stock market in both equity and derivative market which are considered as their main source of investment. Hedge fund investments’ may vary apart from stock market they may invest in forex, commodities, power etc it depends. They also invest in some business to get higher returns. Still, they can get more returns if they are aware of stock market trends. Hedge fund investments are always subject to market risk. The research is going to show the confidence level of hedge fund managers to give the certain returns as they are familiar with factors determining markets and the share prices

As we seen before Barclays is one of the leading hedge fund investors in United Kingdom. Barclays has its investment and its activities throughout the world. Barclays has nearly 2042 kind of hedge fund investments. The balance sheet of Barclays over 1.2 trillion pounds. Barclays gives service in financing and risk management to corporate and for the government clients. Barclays is said as major dealer of securities in United States and in various European governments. Barclays capital CEO is named as Robert bob diamond.Hedge funds are the important product of Barclay’s capital which has an asset value of over 1205.6 billion $. And as of 4th quarter 2009, total asset under the management for the managed futures was 213.6 billion $ The following table explains about the overall value and investors asset in Barclays hedge funds. Hedge fund indices show the overall performance and the returns to the investors the latest table about the returns | February

ROR†| Number of
funds reporting†| YTD through
February †|
Barclay Hedge Fund Index| 0.77%| 1562| 0.43%|
Hedge Fund Industry Money Under Management|  |  |
SUB INDICES|  |  |  |
Convertible Arbitrage Index| 0.67%| 22| 1.49%|
Distressed Securities Index| 0.59%| 31| 3.22%|
Emerging Markets Index| -0.02%| 260| -1.09%|
Equity Long Bias Index| 1.67%| 190| -0.22%|
Equity Long/Short Index| 0.79%| 370| 0.37%|
Equity Market...
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