Fri, May 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Hedge fund net flows will hold up much better if we see another 2008 type market decline

Wednesday, August 24, 2011

This article was authored by Donald A. Steinbrugge, CFA, Managing Partner of Agecroft Partners, a global consulting and third party marketing firm for hedge funds based in Richmond, VA.

After the market decline of 2008, the hedge fund industry experienced a significant contraction that was driven by negative performance, heavy redemptions and almost a complete seizing of inflows. The major question running through the hedge fund industry today, to quote Yogi Berra, the famous New York Yankee catcher, is it “déjà-vu, all over again”? Agecroft Partners is in contact with over a thousand investors per month and they see two major trends developing within the hedge fund investor community based on the recent sell off in the equity market and the increase in volatility, that are very different than what was experienced at the end of 2008. The differences include expectations for hedge fund net capital flows and changes in investor demand for various strategies and types of managers.

Currently, investor’s appetite to make new hedge fund allocations and to meet with managers has seen very little change. Approximately 5% to 10% of investors have said they are on hold until they see how things play out, which is very different than the end of 2008 when a vast majority of investors were on hold or redeeming. Although we have had a dramatic increase in volatility, the S&P 500, as of August 19th, was only down about 10.5% year to date, which has made many investors nervous, but......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  2. Institutions - Institutional investors turn to real estate, planes, Assets at Boston’s five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  3. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Iceland’s failed banks face a tax that targets the lenders’ estates as the government prepares to unveil its plan for exiting capital controls in t

  4. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

  5. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AM’s latest Weekly Briefing, in t

 

banner