Beverly Chandler, Opalesque London:
A new study from Barclays Capital Solutions Group entitled Battle for the Middle: The Evolving Landscape and Value Proposition of FoHFs and Consultants examines the role of intermediaries between investors and Hedge Funds (HFs),
Fund of Hedge Funds (FoHFs) and Investment Consultants (ICs)in the hedge fund eco-system. Barclays estimates that they
are the conduit through which over $1.5tln of assets flow from
investors to HF managers. "Additionally, in their role as active
spokespersons for the HF industry, they educate and inform the
investor community about HFs’ role in investment portfolios,
making it easier than it has been, historically, for HF managers to
find a place in investors’ portfolios" Barclays writes.
The global financial crisis brought disruption and changed to the HF industry and
associated intermediaries and the result has been a lot of speculation on how HF intermediaries have been or will be impacted
in the future, from the impending 'demise’ of the FoHF model
to the buzz around convergence of HF intermediary models and
the rise of customised solutions.
The Strategic Consulting team at Barclays researched further into these developments and their
potential implications for FoHFs and Consultants in particular. Key findings include:
I. Industry size and market structure
According to their estim......................
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