UBS plans to serve its most valuable clients with short-term asset allocation advice. To that purpose, it has hired a high-profile hedge fund manager.
Holders of equities across the world have had a jittery start to the year, with Asian markets particularly exposed to volatility. The wobbles prompted UBS, Switzerland's No. 1 bank, to create a strategy team, which will develop short-term investment advice for its richest clients, the «Financial Times» (by subscription only) reported today.
UBS hired Vinay Pande (pictured left) to head the team of four. Pande is a former partner at Brevan Howard, Europe's biggest hedge fund.
Pande's three colleagues are also former employees of Brevan Howard, according to a report by «Reuters» news agency. The team will report to Simon Smiles, head of asset allocation for the very rich clients at UBS.
Volatility After Seven Rich Years
Investors need to brace themselves for a period of volatility following seven years of rising stock market prices, Smiles said, adding that the strategy team's duty was to turn volatility into profit.
UBS clearly is exploiting a period of weakness at Brevan Howard with the hire of the team.
«Masterfund», the $21 billion flagship of the London-based hedge fund, has had two consecutive annual losses, having previously posted profits in every year since its inception in 2002.
The company in November announced it would pare its workforce by 10 percent and close its office in Geneva.
A Former World Bank CIO
Pande had left Brevan Howard in October already, having worked for the New York branch for three and a half years. He had been in charge of Brevan Howard' Strategic Marco Funds.
Before joining the hedge fund, Pande worked as chief investment adviser at Deutsche Bank and Caxton Associates. From 1985 to 1993, Pande was chief investment officer at the World Bank according to his profile on Linkedin.
