Wed, Mar 29, 2017
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

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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  3. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  4. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  5. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less