Wed, Aug 23, 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: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq

  3. David Tepper says we're 'nowhere near an overheated' stock market[more]

    From Marketwatch.com: Billionaire David Tepper thinks comparing this current stock-market environment with the overheated markets of 1999 is "ridiculous." The hedge-fund manager, who runs Appaloosa Management, told CNBC in a phone interview on Tuesday that the market's record run, notwithstanding la

  4. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc

  5. Investing - Buffett's Berkshire Hathaway will not increase its Oncor offer, Travel-tilting hedge funds are investing in airlines and online travel agencies[more]

    Buffett's Berkshire Hathaway will not increase its Oncor offer From Reuters.com: The energy unit of Warren Buffett's Berkshire Hathaway Inc said on Wednesday it will "stand firm" on its $9 billion offer to acquire 80 percent of Oncor Electric Delivery Company LLC and will not increase it