Beverly Chandler, Opalesque London: The fund of hedge fund (FoHF) industry is not as dead as it might seem, says SEI in their 2012 funds of hedge funds (FoHF) survey. The survey was
conducted in June 2012 by the SEI Knowledge
Partnership, with online questionnaires completed by
senior managers at 220 institutions including institutional
investors, investment consultants and FoHF managers.
Investors participating in the
survey reported a median of 9.0% of their assets were
held in FoHFs. Consultants reported a median of 3.1%
of assets in FoHFs.
Despite the many problems that the industry faces, such as disgruntled investors, stagnant assets under management and a dwindling market share, SEI feels that the bigger picture is far more nuanced, complex and
indeed, optimistic. "The FoHF industry is by no means monolithic. Rather, it is a mosaic of
fund structures that vary widely in their investment strategies, methods, client services,
and business approach, as well as in their level of growth. Based on our recent survey
of institutional FoHF investors and fund managers, along with our review of the latest
thinking in the industry, at SEI we believe that the fund of hedge funds model may have
more resilience and adaptability than some observers seem to think" the firm writes.
The survey finds that even amongst
large institutional investors, fe......................
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