Opalesque Industry Update – Barclays Capital survey shows bullish expectations for returns and allocations, increased hiring, new product launches and relatively steady leverage |
Barclays Capital announced the results of surveys conducted at the firm’s inaugural Hedge Fund Symposium hosted in New York, showing hedge fund managers’ and investors’ expectations for the industry in 2011.
Ajay Nagpal, Head of Prime Services at Barclays Capital, commented, “The investment environment for hedge funds is much better than it was 24 months ago. The results of our survey, combined with comments from both hedge fund managers and investors show considerable positive momentum in the hedge fund industry.”
The majority of the surveyed managers and investors reported optimism about the hedge fund industry’s prospects for growth in 2011. Key findings from managers attending the Symposium included:
• Two thirds of managers expect to deliver gross returns of 10 – 15%, while ~30% expect to deliver outsized returns of 15% or higher
The polled investors also reported optimism about the industry:
• 49% of investors planned to increase their allocations to hedge funds in 2011, with endowments and foundations, and insurance funds the most likely to increase their allocations (82% in the case of endowments and foundations and 64% in the case of insurance funds)
Louis Molinari, Head of Capital Solutions in Prime Services at Barclays Capital said, “In spite of the increased optimism, hedge fund managers and investors attending our Symposium reported that they are still wary of a number of uncertainties ahead. Top of mind for our respondents included regulation, inflation and deflation risks, the changing importance and possible overheating of emerging markets, and the continuing economic uncertainties facing the developed world.”
The 275 investors surveyed at the Symposium represent $880 billion of hedge fund assets under management (AUM), while the 200 hedge fund managers surveyed represent $225 billion in AUM. The two day Symposium, held in New York in October, was attended by senior international hedge fund investors and managers.
Barclays Capital’s Prime Services business provides clients across the globe with an integrated and cross-asset class offering for financing, clearing and execution. The firm offers unique frameworks for asset protection, margining solutions, industry intelligence and insight, analytics and execution technologies. Barclays Capital has been recognized for its leadership in numerous industry polls and surveys, including Best Prime Broker Technology provider at HFM Week magazine’s 2009 & 2010 European Service Provider Awards, 44 Best in Class Awards in the 2009 Global Custodian Prime Brokerage survey, and 106 Best in Class Awards in the Global Custodian OTC Derivatives Prime Brokerage survey.
(press release - 14th January, 2011)
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs over 25,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. www.barclayscapital.com