Dan Zwirn Interviewed in HFMWeek Magazine

In the 2013 Review Of The Year issue of HFMWeek Magazine, Dan Zwirn was interviewed by reporter Jasmin Leitner.  The article written by Leitner discussed the gradual convergence between hedge funds and private equity that was seen over the course of this year.
Stephanie Miller, who is global head of alternative investment services at J.P. Morgan, believes this gradual convergence is influenced by the growth of hybrid fund structures.

“many sophisticated, institutional investors are increasingly looking to tap into the alpha found in the most illiquid part of the credit curve,” she says, adding that hybrid funds offering access to certain subsets of the fixed income world can flourish, particularly as the defined waterfall structures and lock-up periods help investors in matching their long-term liabilities.

Dan Zwirn, cautions although there has been some convergence, part of it is misperception by the investor.

“Investors often conflate private equity and hedge funds, particularly in how they perceive illiquidity and embedded equity risks.” Nonetheless, he adds that the current environment creates good opportunities for managers with the right offering – hybrid or otherwise.

Leitner goes on to say mangers who posses the right size and infrastructure, are able to offer their customers the best of both worlds. Leitner concludes shifting between asset categories will likely pay off. She believes the trend will continue, and that differentiation is key.

To read the full edition of HFMWeek in 2013, click here.