Delivering Alpha through Niche Investment Strategies

Alexandre de Vaivre of Aurium, a sponsor at the marcus evans Elite Summit 2012, on investment opportunities that can deliver value to private wealth investors.

London, Sept 18, 2012 – (ACN Newswire) – “In times of very low yields, where the mainstream investments in equities and bonds are no longer reliable and safe, private wealth managers have to think outside the box and be creative in their search for strategies and managers who can deliver alpha in a consistent manner,” according to Alexandre de Vaivre, Partner, Aurium. The source of non-correlated assets is usually in niche strategies, which are less populated by definition, thus harder to find, he elaborates.

Ahead of the marcus evans Elite Summit 2012, in Montreux, Switzerland, 28 – 30 November, where Aurium will be present, de Vaivre uncovers investment opportunities that are immune from market volatility and uncertainty.

– Could you tell us about Aurium’s private equity real estate fund, and the niche you have found in the property market that delivers real alpha?

The reason we are launching the fund relies on the observation of two persistent facts: there is a strong price bifurcation between “average properties” and the most desirable trophy properties in Prime Central London, “golden postcodes” like Mayfair and Knightsbridge.

There is also a structural imbalance between offer and demand due to a lack of available and upmarket properties for the very wealthy. The main reason is that most buildings in London are protected and unlike New York, you cannot build high rises in the golden postcodes.

The Aurium Real Estate London Ultra Prime Fund is in a unique position to benefit from this price bifurcation and structural imbalance.

– How does your fund deliver value to investors?

The London Ultra Prime Fund buys properties in the best areas around Hyde Park, extends the leases, repositions them for the requirement of the ultra wealthy and then resells them with a very significant margin.

The fund delivers value to investors thanks to our strong local knowledge and track record in this strategy. We have achieved strong returns independently of property market price movements.

– Pricing inefficiencies is what everyone is looking for. Why do you believe you have found such a niche in your other fund, the Equity Finance product?

The Equity Finance arbitrage niche actually exists for many years now. It was the exclusivity of some large investments banks who were doing this on their proprietary books.

We are original in the fact that we are among the first to bring this access-restricted strategy to investors.

The strategy has some very appealing benefits. First, it is completely uncorrelated to equity markets and bears no market risk as positions are fully hedged at all times. Second, there are only few participants because the barriers to entry are high as few people have the knowledge to execute the strategy properly. Third, the returns generated are strong and above all consistent.

– What should investors look for in fund managers?

We believe that investors should look for less crowded niche strategies where real alpha can be generated by managers with a unique and proven expertise. Significant alignment of interest between the investors and the managers is also essential.

Often, the road less travelled offers those who dare higher returns.

About the Elite Summit 2012

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 28 – 30 November 2012. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed thought leaders in private wealth management and market leading asset and fund managers for a highly focused and interactive networking event. The Summit includes presentations on asset allocation trends, wealth transfer, streamlining tax efficiencies and manager selection strategies. For more information please send an email to [email protected] or visit the event website atwww.elitesummit.com/AlexandredeVaivreInterview.

The Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
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Please note that the Summit is a closed business event and the number of participants strictly limited.

About Aurium

Aurium is a fully independent alternative investment manager with specialisation in Equity Finance and Prime Real Estate. Aurium was established in 2008 and has now 39 employees. Aurium has successfully managed institutional and private investors’ money. It acts as investment manager to various investor pools. The founding partners and partners are seeding new strategies and act as long term investors.www.auriumcapital.com.

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visitwww.marcusevans.com.

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Contact:

Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: [email protected]

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