Wed, Apr 16, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors unconvinced that new hedge fund regulations are protecting them

Monday, November 05, 2012

amb
Arthur Tully
Bailey McCann, Opalesque New York:

Despite a spate of new regulations aimed at protecting hedge fund investors, a mere 10% of them feel that the new regulations will actually protect their interests according a recent survey completed by Ernst & Young. The 2012 survey, Finding Common Ground, was compiled by consulting firm Greenwich Associates for Ernst & Young, and compares opinions from 100 hedge fund managers who manage over US$710bn and 50 institutional investors with over US$190bn allocated to hedge funds on current topics related to the hedge fund industry. Findings show that although the two groups agree on increasing investments in headcount, technology and risk management, stark contrasts exist on compensation structure, fees and expenses.

At a broad level, the investors in the survey plan to maintain their allocations to hedge funds, but in a surprising shift, much of that investment is being moved away from the biggest hedge funds and into smaller, emerging managers. Fund of funds are also following this trend, with a majority of fund of funds respondents saying that they are investing in a "fund of one."

Managers generally seem to support this trend. 90% of managers in the survey expressed a preference for direct investments from institutional investors over fund of funds and nearly two-thirds of pension funds and endowments responded that they prefer direct investment in hedge funds.

Survey authors note that while no direct caus......................

To view our full article Click here

Banner
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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably