Sat, May 26, 2018
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. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven