Fri, Aug 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Rothstein Kass: Separate accounts and seeding are becoming significantly important in the hedge fund world

Thursday, April 26, 2012

Benedicte Gravrand, Opalesque Geneva: According to Rothstein Kass’ sixth annual survey of the hedge fund industry, one issue that is striking is that separate accounts and funds of one (aka managed accounts) are gaining ground and now nearly equal the number of offshore products. Furthermore, more than half of the funds polled would consider creating a separate account for investors who’d put in $50m or more.

The survey, out this month, was conducted in January 2012 among 400 hedge fund firms, representing more than 770 vehicles, and based primarily in the U.S.

And UCITS-compliant funds, popular in Europe, are not quite making it in the U.S. As this vehicle does restrain investment capabilities a great deal, this is not surprising.

Another unsurprising fact is that there are still less emerging hedge funds than there were prior to 2008; pre-2008 was a boom period for a young and carefree industry. No longer.

At the same tine, almost 80% of respondents believe seeding is critical to a successful launch this year.

Rothstein Kass has seen a proliferation of seeders and early-stage allocators within the last 12 to 18 months. Meredith Jones, director at Rothstein Kass expects this to continue, as emerging managers are a good source of alpha, which investors seek, and are more dependent on seed capital. "In fact, we expect the industry to find more ways to get institutional capital to emerging funds, perhaps through separate ......................

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest