Komfie Manalo, Opalesque Asia: A white paper released by hedge fund research firm Infovest21 says the
relationships between funds of funds and hedge fund managers, funds of
funds and consultants, and funds of funds and institutions are changing.
In the paper entitled, "The New Breed of Funds of Fund,"
Infovest21 said some funds of funds have started to compete against
hedge fund managers. The trends can be seen at all levels including
specialized products, like for example macro credit.
The trend has implications for funds of funds acting as a strategic
partner and going further up the value chain, potentially even including
direct hedging and adding overlays. Some funds of funds are putting on
direct trades, others bring managers on an internal platforms, the paper
said.
Co-investment: Opportunities and stumbling blocks
Lois Peltz, president of Infovest21 and author of the report, commented,
"More funds of funds are exploring co-investment opportunities but not
many have developed a real expertise in the area. Co-investing is a
difficult thing to do. A large staff is needed and it tends to focus on
illiquid investments. Potential conflicts of interest are another
stumbling block. Another reason for the slow pace of hedge fund
co-investment is that hedge funds only started to get into
co-investments following the 2008 financial crisis."
How many will copy Blackstone...................... To view our full article Click here
|