Source, the UK-based provider of exchange-traded funds (ETFs), has hired hedge fund specialist Pasquale Capasso as director in the firm’s capital markets team.
According to the firm, the move is because hedge funds are using ETFs more to gain exposure to indices, as it is a cheaper option than using futures which they historically have done. This is especially true when factoring in the additional costs of ‘rolling’ futures at each expiry period.
Three of the six indices that Source monitors had more expensive futures rolls in the December 2015 expiry period compared to the relevant Source ETFs according to the firm.
“We are seeing more than €100 million a day traded by Hedge Funds primarily in our range of sector ETFs,” said Juergen Blumberg, head of capital markets at Source.
Prior to joining Source, Pasquale was at MSCI Analytics for three years, working in sales and business development of portfolio risk and performance analytics to banks and Hedge Funds.
He also worked in sales and marketing at Deutsche Bank in Italy, focusing on ETFs and structured products.
Source has over $20 billion (€17.5 billion) in assets under management.
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