UBS currently manages approximately $11 billion in quantitative and “alternative” strategies and roughly $15 billion in real estate. The revamp of the two divisions is designed to place more emphasis on two investment areas that have attracted investors looking for a safe harbor in the maelstrom of the current stock market cycle, according to a report by Reuters.
“What we’re seeing is clearly a demand for absolute return strategies and a big part of that is hedge funds,” John Fraser, chairman and chief executive of UBS Global Asset Management told Reuters.
The change include moving the current chief executive of the O’Connor hedge fund business, Joe Scoby, to a position with additional responsibilities. Scoby will now lead a Hong-Kong based “fund of funds” hedge fund unit known as AIS; DSI, a New York-based enhanced equity index manager; and the Alternative Investment Group in Zurich.
Filling any brain drain in the O’Connor fund will be the former chief executive of UBS Warburg Swizerland Danny Schweizer, who is moving to Chicago to become deputy chief executive of the fund.