Sun, Feb 26, 2017
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. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways