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BNP Paribas announces support for Hedge Fund Centre at London Business School

BNP Paribas is pleased to announce it is to fund London Business School's Centre for Hedge Fund Research and Education for three academic years to September 2008. This is the first time that BNP Paribas has funded a major initiative at London Business School.

The Centre

The Centre will be renamed the BNP Paribas Hedge Fund Centre. It will continue to be led under the academic direction of Dr Narayan Naik, Associate Professor of Finance at London Business School. An Advisory Board to oversee the Centre's continuing development has been formed under the chairmanship of Patrick Fauchier, Chief Executive of Fauchier Partners.

Education and Research

The Centre for Hedge Fund Research and Education was established at London Business School in September 2001 with the objective to become the leading academic authority and focal point for teaching in the hedge fund arena in Europe.

Since its establishment, the Centre has run seminars with hedge fund themes, has acted as a forum for industry participants and academics to meet and has sponsored events for both practitioners and academic researchers to present their findings. In addition more than three hundred investment professionals and students have benefited from the Centre's electives and short courses.

Over the last four years the Centre has conducted research into the nature of risks taken by hedge funds in their trading strategies, a topic of particular interest to regulators as well as to potential investors. Among other topics, it has also investigated the relationship between the ability of funds to attract new money on the one hand, and relative performance, incentive fees, fund size and age, and capacity constraints on the other.

BNP Paribas' Commitment

Through its support of the Centre, the BNP Paribas group intends to be at the forefront of research into hedge funds. BNP Paribas Asset Management, BNP Paribas Securities Services, BNP Paribas Private Banking, BNP Paribas Fixed Interest and BNP Paribas Equities and Derivatives will all be involved in the BNP Paribas Hedge Fund Centre, together with Fauchier Partners, the London-based fund of hedge funds firm in which BNP Paribas has a 50 percent economic interest.


Welcoming this important commitment to work in the Hedge Fund area at London Business School, Pascal Boris, CEO of BNP Paribas in the UK said: “BNP Paribas already enjoys close ties with London Business School, both as a place of education for our employees and recruitment for the bank. This new agreement will further reinforce the relationship between BNP Paribas, a leading global bank with a strong UK franchise, and one of the world's leading business schools.”

Patrick Fauchier, Chief Executive of Fauchier Partners added: “There is no doubt that hedge funds have become increasingly important as investments over the last few years. It is crucial that all of us gain a greater understanding of how they operate and affect markets. We are particularly pleased that the BNP Paribas group, which is involved in many aspects of hedge funds, has agreed to sponsor the next stage of the development of the Hedge Fund Centre.”

Dean Laura Tyson of London Business School commented: “The BNP Paribas Hedge Fund Centre at London Business School will bring together academic theory and real life practice in this burgeoning sector of finance. As hedge funds evolve, it is important to ensure that there is a dynamic interface between intellectual thought and industry practice. Through the support of BNP Paribas, London Business School will continue to host the leading Centre for research into hedge funds."


London Business School

London Business School's Vision is to be the pre-eminent global business school, nurturing talent and advancing knowledge in a multi-national, multicultural environment. Founded in 1965, the School graduated over 800 MBAs, Executive MBAs, Masters in Finance, Sloan Fellows and PhDs from over 70 countries last year. The School's executive education department serves 6,000 executives and 60 corporate clients on its programmes every year. London Business School is based in the most accessible and international city in the world and is one of only two UK business schools to have twice been awarded the highest research rating of five-star (5*), by the Higher Education Funding Council for England (HEFCE), confirming the School as a centre of world-class research in business and management.

BNP Paribas Hedge Fund Centre

The Centre for Hedge Fund Research and Education at London Business School was founded in September 2001. It aims to become the leading academic authority and focal point for new ideas on hedge funds in Europe.

The Centre encourages and incentivises research aimed at developing a greater understanding of all aspects of hedge funds including their trading strategies and the asset markets they invest in. Research is carried out both by members of the finance faculty at London Business School and by visiting researchers from Europe and the US. Working papers produced by the Centre are disseminated through its web site at:

The Centre supports work on a series of initiatives aimed at developing the coverage of hedge funds on London Business School's MBA and Masters in Finance courses and its Investment Management Evening Programme.

The Centre also runs a short executive education course designed for people already working in the hedge funds arena and focussing on the place of hedge funds in a prudent portfolio. Further details can be found at:

BNP Paribas

BNP Paribas is a European leader in banking and financial services, with a significant and growing presence in the United States and leading positions in Asia. BNP Paribas is the first bank in the Euro zone in terms of net income (2004). The group has one of the largest international banking networks, a presence in over 85 countries and employs approximately 100 000 employees, including 67,000 in Europe. BNP Paribas enjoys key positions in its three core businesses: Corporate and Investment Banking, Asset management & Services and Retail Banking.

Fauchier Partners

Fauchier Partners is a specialist London-based firm, which manages a wide variety of funds of hedge funds. It currently has approximately the equivalent of US $ 4 billion under management

Fauchier Partners' clients include Academic Institutions, Banks, Charities, Insurance Companies, Pension Funds, Fund Management Groups and Family Offices. Fauchier Partners also advises a number of listed open-ended and closed-end ‘funds of funds'.

Following a merger completed in late in 2004, BNP Paribas Asset Management acquired a 50 per cent economic interest in Fauchier Partners.