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Investment expertise

Alternative investments

UBP has long been convinced of the significant benefits of alternatives as investment vehicles, including the value and diversity they can create in portfolio construction. Determined to be a front runner in the alternative investment space, we have been investing in hedge funds since 1972 and are one of Europe’s top players in the industry, investing close to USD 9 billion for both prominent institutional clients and highly sophisticated private investors.



Investment case

Alternatives have two main benefits when it comes to global portfolio allocation considerations:

  • Exposure to a variety of different investment themes, thus expanding investors’ opportunity set and potential sources of new return drivers;
  • A proven, uncorrelated power to other asset classes, especially in bear markets.

In an environment where bonds see their risk/return ratio deteriorate, equity markets are volatile, and the historical negative correlation between bonds and equities is being challenged, alternatives bring valuable investment solutions to investors through:

  • An opportunistic approach, aiming at providing higher return expectations than the fixed income segment but with a similar risk; and
  • A directional, asymmetrical return approach, aiming at capturing significant equity upside while limiting downside risk.

It should nevertheless be noted that some alternative investments may be restricted to certain categories of investors and may also involve significant risks.

A long-term commitment to alternative investments

UBP has invested in hedge funds since 1972, and is a market leader in alternative investments – our Bank ranks among the top ten in Europe.

Our long-standing expertise means that we are skilled in reading the market. We are dedicated to sharing our know-how with our investors and partners.

Investment team

  • An integrated team of 21 alternative investment professionals specialising in various areas, from research to risk monitoring, with the senior team members averaging seventeen years of experience in the industry
  • 30 people dedicated to alternatives in Geneva, London, New York and Paris;
  • A team benefitting from the strong network of resources within UBP.

Investment process

Our investment process is dynamic and continuously enhanced.

It is a blend of our top-down and bottom-up analyses, with risk oversight at each step, taking investors’ constraints into account.

Top-down

  • Macroeconomic scenarios (main and alternate scenarios);
  • Market fundamentals (relative valuations);
  • Market dynamics (flows, concentration, signals, targets).

Bottom-up

  • Source, analyse and access top alternative managers;
  • Identify high-conviction managers in each strategy.

Risk management

  • Anticipate and prepare for various market scenarios;
  • Proactively address market and strategy risks.

Operations

  • Obtain the best possible terms from underlying managers;
  • Retain the best providers and limit overall costs.

A wide range of solutions

UBP is a strong investment partner, offering a wide range of solutions to its investors.

Single-fund solutions:

  • Alternative UCITS
    The alternative UCITS industry has been booming over the past few years and should continue to expand and provide high-potential investment opportunities. Alternative UCITS have the unique advantage of combining the benefits of alternative investments (i.e. an improved risk/reward ratio compared with traditional, passive assets) and those of the UCITS framework, by bringing investment comfort through increased liquidity, enhanced transparency, strong regulatory oversight and reinforced risk management.
    With UBP’s U Access, you will benefit from an integrated platform with excellent resources and managers who handle portfolios and service our clients.
  • Niche investment themes via opportunistic partnerships
    As an innovator, UBP is constantly looking out for new and niche solutions, partnering with single fund managers in specific areas of expertise (such as insurance-linked securities, leveraged loans, hedge funds, private equity, real estate and co-investments).

Advisory solutions

UBP offers a set of different advisory services to its investors, including the following areas of expertise:

  • Macroeconomic and thematic investment opportunities, through research papers and scenario analyses;
  • Due diligence expertise, which uses its rigorous selection process to uncover and monitor talented managers;
  • Structuring and engineering capabilities, providing suitable investment solutions that respond to regulatory constraints;
  • Risk-control know-how, through ongoing monitoring of market and liquidity risks.

Our clients can also access information through our proprietary database, OPTICS®, which provides research, analytics, portfolio valuations and risk-monitoring tools.

Commingled fund and customised mandate solutions

UBP offers a full range of alternative funds portfolio, either:

  • ‘Ready-to-invest’ funds of funds with a predefined profile (i.e. absolute return or directional return); and
  • Tailor-made investment solutions adapted to a client’s needs and constraints that enable greater flexibility and control.

Bringing technology to investors

OPTICS®: our advanced, proprietary web-based platform offers a full range of services and tools across research, analytics, portfolio valuations and risk monitoring. This tool is only available to qualified investors, depending on their jurisdictions.

Our fund range

Funds

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Institutional clients

With a team of more than 200 people, UBP Asset Management has built an on-the-ground presence in the world’s major markets through organic growth and selected partnerships.

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