About | Free Trial

Last Update

2016-03-04T00:00:00.000Z

This profile was last updated on // .

Is this you? Claim your profile.

Wrong Erwin Heri?

Dr. Erwin Heri W.

Professor of Financial Theory

University of Basel

HQ Phone:

University of Basel

Petersplatz 1, Postfach

Basel, 4001

Switzerland

Find other employees at this company (936)

Background Information

Employment History

Chief Information Officer
CSFS

Affiliations

Board Member
Ciba Specialty Chemicals Inc

Chairman of the Audit Committee
Ciba Specialty Chemicals Inc

Web References (88 Total References)


Back in January I attended a ...

www.donaldwm.co.uk [cached]

Back in January I attended a Dimensional investment conference in Frankfurt where Erwin Heri, who is the Professor of Financial Theory at the University of Basel, gave a fascinating presentation. The study Professor Heri told the delegates about his role advising the Guinness family, and the study he had undertaken in connection with hedge fund...


Back in January I attended a ...

www.donaldwm.co.uk [cached]

Back in January I attended a Dimensional investment conference in Frankfurt where Erwin Heri, who is the Professor of Financial Theory at the University of Basel, gave a fascinating presentation.

The study
Professor Heri told the delegates about his role advising the Guinness family, and the study he had undertaken in connection with hedge fund investments over the preceding three-year period.
The Guinness family had expressed the desire for Professor Heri to investigate whether they should allocate some of their investment funds towards hedge funds. This was because they had picked up on the fact that many of their neighbours in the West End of London were hedge fund managers, not only driving some fabulous cars but also living in the same expensive part of London as themselves! They therefore assumed that if the hedge fund managers could afford to live in the same area that their investment strategies must be successful, and therefore potentially worthy of inclusion within their own portfolios.
At the time Professor Heri expressed some doubts about the reliability of hedge funds and whether they would indeed be worthy of inclusion but nonetheless began the study of the data. Coming from his academic background, he agreed to undertake a three-year research project on hedge funds. After significant due diligence, and with the backing of the Guinness family behind him (which obviously opened up a significant number of hedge fund doors to him that would not normally be available to retail investors) he selected six hedge funds that demonstrated potential out-performance and were then worthy of further consideration.
He then explained to the delegates that a three-year project began where the Guinness family invested an initial amount within these six hedge funds, with a view that if over the three-year period the funds could demonstrate out-performance they would then invest significantly larger sums. Obviously this would have been a great incentive for the hedge fund managers to try and achieve out-performance in hope of additional assets to follow in the future.
The results
Professor Heri then explained and demonstrated the performance track record of the six funds. What was fascinating was that all of the six funds under-performed a conventional portfolio of equities and fixed interest, and some by quite a significant margin. This was during a time of rising investment markets and therefore you would have thought it would have offered the potential for the hedge fund managers to deliver upon their promises, and to provide investors with enhanced returns during this favourable investing time. However, the actual results were very different.
At the end of his presentation the conclusion that Professor Heri came to was that even though some of the hedge fund managers were no doubt highly skilled, a significant contributing factor to their under-performance had been the high charges within the hedge funds. This included not just high regular ongoing charges but also high performance-based fees, which ultimately unfortunately eroded the return for the end-investor.
Conclusion
The findings of Professor Heri mirrors our own sceptical views on the hedge fund industry.


Back in January I attended a ...

www.donaldwm.co.uk [cached]

Back in January I attended a Dimensional investment conference in Frankfurt where Erwin Heri, who is the Professor of Financial Theory at the University of Basel, gave a fascinating presentation. The study Professor Heri told the delegates about his role advising the Guinness family, and the study he had undertaken in connection with hedge fund...


swiss:finance:institute

www.bankingemba.com [cached]

Erwin W. Heri is Professor of Financial Theory at the University of Basel and Swiss Finance Institute Adjunct Professor. At present, his activities in the academic field as well as in the field of investment consulting are: Chairman of "Valartis Bank AG" and for many years President of the investment commission of "Publica" the pension fund of government employees. In addition his is Chairman of a British family office. Formerly, he was an active board member of international renowned financial service providers e.g. Chief Financial Officer at "Winterthur Versicherungen" as well as CFO and Chief Investment Officer at "Credit Suisse Financial Services". Erwin W. Heri also holds mandates at several advisory boards and is author of numerous books and articles.


swiss:finance:institute

www.bankingemba.com [cached]

Erwin W. Heri is Professor of Financial Theory at the University of Basel and Swiss Finance Institute Adjunct Professor. At present, his activities in the academic field as well as in the field of investment consulting are: Chairman of "Valartis Bank AG" and for many years President of the investment commission of "Publica" the pension fund of government employees. In addition his is Chairman of a British family office. Formerly, he was an active board member of international renowned financial service providers e.g. Chief Financial Officer at "Winterthur Versicherungen" as well as CFO and Chief Investment Officer at "Credit Suisse Financial Services". Erwin W. Heri also holds mandates at several advisory boards and is author of numerous books and articles.

Similar Profiles

Other People with this Name

Other people with the name Heri

Sylvie Héri
Raymond Chabot Grant Thornton LLP

Steve Heri
NAI Capital Inc

Eka Heri
TUGU RE

Danang Heri
FMC Technologies Inc

Christine Heri
Department of Labor

Browse ZoomInfo's Business Contact Directory by City

Browse ZoomInfo's
Business People Directory

Browse ZoomInfo's
Advanced Company Directory