Edmond de Rothschild, the French-based investment management firm, is trumpeting four years of standout performance in alternative and tradi...

Edmond de Rothschild, the French-based investment management firm, is trumpeting four years of standout performance in alternative and traditional multi-management.

Edmond de Rothschild Multi Management, founded in 2002 and chaired by Pierre Palasi, has amassed about €2.3 billion ($2.74 billion) in around 30 funds.

A subsidiary of La Compagnie Financière Edmond de Rothschild, the multi-manager division saw assets under management grow by nearly 100 per cent in 2005.

The multi-manager’s alternative investments team led by Olivier Neau, which handles €1,2 billion in assets, claims to have out-performed the sector average of approximately 11 per cent for 2005. It adopted a strategy of going overweight in long/short and event-driven styles and exposure to natural resources.

The firm’s clientele is split roughly half between institutions and private clients or wealth management advisors. Alternative management is steadily gaining ground especially among a broad institutional clientele, with outstandings now exceeding those of the company’s traditional clientele of wealthy private clients.

In terms of comparative performance, Edmond de Rothschild Multi Management said over the period 2000-2005 the firm saw a market decline followed by a rally that has been, “less volatile than equities, outperforming bonds.”

LCF Rothschild Group has itself been active in alternative multi-management for 37 years and employs more than 70 people dedicated to these activities in London, Geneva, Luxemburg and more recently Paris. It has around $8 billion in assets and around 15 alternative funds of funds.