Managers are often faced with searching for the right format for “packaging” investment strategies, and clients are faced with a choice of proposed options. To discuss this important topic, on October 12, 2021, a Club event called How to Package Investment Strategies was held in Moscow.

Market experts including representatives of Aravana Capital Management discussed three formats for “packaging” investment strategies:

Fund vs. Managed Accounts vs. Structured Notes.

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19 experts spoke at 4 sessions including Pavel Teplukhin (Matrix Advisors), Mikhail Khanov (Algo Capital), Andrey Ivanov (Leon Family Office) and others. Andrey Movchan (Movchan Advisers) from London also joined the discussion.

The general sponsor of the event was SPB Exchange with the support of Arendt & Medernach and Altai Partners. Speakers of three panel discussions of the event discussed in detail all the pros and cons of the most common “packaging” options – Fund, Managed Account, and Structured Notes. The fourth session was attended by the investors.

Managing Director of Business Development of ARAVANA Group of Companies, Lana Avetisyan, commented, “In terms of private equity and hedge funds one of the key differences is the time horizon of the investment. Hedge funds tend to invest in assets that can provide good return on investment (ROI) in the short term. We prefer liquid assets to ensure a quick transition from one investment to another. The second important feature is the peculiarity of the hedge fund strategy. It can be applied widely to minimize losses on all instruments in the portfolio, either stocks, bonds, gold or commodity. And it can be used narrowly to protect a specific position.”