Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Infovest survey: Hedge fund managers' biggest concern is bias toward larger managers despite performance results

Thursday, April 22, 2010
Opalesque Industry Update - During April, Infovest21 interviewed 60 managers about their strategies, track record, infrastructure, asset base, investor base, portfolio composition, terms, returns and outlook.


The survey, the sixth annual Infovest21 manager snapshot survey, provides a snapshot look at the typical hedge fund manager in today's environment. Among the most interesting findings are:

• Managers' biggest concern is bias toward larger managers despite performance. Regulation had been considered the biggest challenge in recent prior annual surveys.

• Highest performance in 2009 came from the smallest managers i.e. those with less than $100 million under management. On average, they generated a 44% return. The average performance for all managers surveyed was 36% in 2009.

• The same percentage of managers, 79%, is registered today as in 2008.

• The main reason managers think their investors allocate to them is their investment approach/strategy. In prior years, the main reason had been performance.

• The average breakdown of the investor base is: 41% high net worth/family office, 18% funds of funds, 14% pensions, 12% other financial intermediaries, 4% foundations, 4% endowments, 3% sovereign wealth funds and 4% other.


Looking ahead to next year, the managers expect to see a decline in the percentage of high net worth investors/family offices with increases in foundations, pensions and endowments.

• Most managers have made changes to their business strategy. Most frequently mentioned was offering more products and services. Also mentioned were becoming more marketing oriented, expanding into new markets and cultivating institutional clients.

• The average assets per hedge fund firm in the survey dropped from $3.2 billion in 2008 to $2.7 billion today.

• A big drop occurred in the number of people in the typical organization from 78 in 2008 to 35 today.


Infovest21 website


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n