Alternative Market Briefing

Poll shows that most think there is a future for FoHFs, but perhaps if they came in a different format

Friday, November 21, 2008

By Benedicte Gravrand, Opalesque London: A poll on the future of funds of hedge funds was conducted at the GAIM conference on Funds of Funds in Geneva last week.

Daniel Penseyres, managing partner at Geneva-based Bedrock Alternative Asset Management, who moderated the electronic polling panel, remarked on his surprise by the relative optimism of the conference speakers, despite the expectation that AUM and revenues for the industry would fall sharply.

He said: “The anticipated change of the economics of the hedge fund industry may well be beneficial for the institutional investor segment, and probably also for private investors, if and when they return to alternative investments. The move could probably be triggered by the family offices as they are willing to take more risks going forward.”

He added that he shared the views of the speakers that there would be a great deal of opportunities out there. Timing remains a key factor as investors may not be willing to accept further negative performance in the next months or quarters.

Poll During the poll, most conference attendees thought there was a future for funds of hedge funds, and some thought that their future would come in a different format. Almost half did not believe that FoHFs were still the best vehicle for exposure to alternatives.

The majority thought that the most important element one should expect from a hedge fund managers was performance (none thought that lock-up......................

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