Tue, Oct 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Expectations gap persists between LPs and GPs, survey shows

Thursday, November 09, 2017

Bailey McCann, Opalesque New York:

New survey results from SEI & Preqin show a persistent disconnect between investment managers and investors. Preqin puts the total alternatives market at approximately $7.7 trillion across strategies and investors in the survey indicate that they have plans to continue to allocate to alternatives. However, investors also expect more transparency, as well as a vast operational and technological infrastructure - all with lower fees.

"The disconnect between what LPs expect and what it means for the GP continues to be significant," says Jim Cass, Senior Vice President and Managing Director, at SEI Investment Manager Services in an interview with Opalesque. "For firms that aren't running mega-funds, there is a significant cost to do business and that puts pressure on GPs and what they can do."

According to Cass, as investors have moved into alternatives they have also set the bar higher for the managers they select - in some cases trading away outperformance for the consistency of mega-funds. As a result, mid and small-tier GPs have moved to offer more fund structures and separately managed accounts that let LPs pick and choose best ideas. While that works for bringing in new business, it also sets up an increasingly complex account management structure for GPs and can make it difficult for LPs to compare peer managers across vehicles. The multi-structure approach also removes resources from investing in order to meet growing repor......................

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. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  4. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori

  5. Investing: Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks, U.S. fund investors pull most cash from bonds since February -ICI[more]

    Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks From CNBC: Billionaire hedge fund investor Leon Cooperman confirmed to CNBC on Wednesday that he has personal money in the cannabis industry, noting investments in a few young marijuana companie