But mediumsized funds like Media Super can’t always push for them, and this would certainly be the case if the fund tried to access the hedge fund elite offshore. So the fund has the best chance of striking beneficial commercial terms – which flag a healthy alignment of interests among funds and managers – by seeking hedge fund mandates in Australia. “We need to beware of assetgathering funds managers,” Glass says. “It’s no good for us to be on a long tail with a lot of other investors in a product.” Being a close and valued investor means you know what makes a manager tick. The financial crisis made it clear that many hedge fund strategies carried an inherent, long public-market beta, and that a large of returns was due to the

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