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

Hedged mutual funds become the dominant vehicle for advisors and institutions looking at alternatives

Tuesday, June 25, 2013

Bailey McCann, Opalesque New York: A new survey out from Morningstar and Barron's shows that liquid alternatives, or hedged mutual funds are becoming the dominant vehicle for advisors and institutions looking to access hedged strategies. Morningstar and Barron’s conducted the survey in March 2013 and received responses from 235 institutions and 471 financial advisors.

Alternative mutual funds saw inflows of $19.7bn in 2012, while Morningstar estimates that among funds in its database, $7.6bn flowed out of single-strategy hedge funds. The shift has been fairly rapid. According to survey data, 61% of institutions said they used a hedge fund for long/short equities in 2010, while only 26% said they used hedge funds for long/short exposure this year. 45% of institutions said they managed long/short exposure through a hedged mutual fund up from 38% in 2010.

Institutions and advisors do see the value of hedged strategies, even if they are using mutual funds for exposure. More than 20% of institutions said they expect alternative investments to make up more than 40% of holdings over the next five years.

So far, long/short equity and nontraditional bonds are leading the pack in terms of allocations. In 2012, the long-short equity and nontraditional bond categories saw the largest alternative mutual fund flows of $6.1bn and $5.9bn, respectively. Advisors also expressed particular interest in yield-producing alternatives. They cited private real estate as their top ......................

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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro