Tue, Aug 23, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli finds institutions look to hedge funds for risk management and diversification

Wednesday, September 11, 2013
Opalesque Industry Update - Institutions look to hedge funds for risk management and diversification according to new research from Cerulli Associates, a Boston-based global analytics firm.

"Numerous institutions are using hedge funds to reduce risk in their investment portfolios," reveals Michele Giuditta, associate director at Cerulli. "Our research shows that institutional investors overall have been steadily increasing the portion of their assets allocated to hedge funds over the past five years. Endowment funds, family offices, and foundations were early adopters and currently remain established investors."

The September 2013 issue of The Cerulli Edge-U.S. Asset Management Edition examines how asset managers balance risk, providing a close look at request for proposal and database teams, exchange-traded funds, and alternative investments.

"Asset managers have refined their approach to asset allocation over the past several years to emphasize risk-based approaches," Giuditta explains. "Using a risk-based lens, managers aim to adjust their portfolios to offset periods of extreme volatility and market stress that may affect both equity- and credit-related investments in the same ways."

"Institutional investors have been under significant pressure since 2008 to increase their portfolio returns without inflating their risk profiles," Giuditta continues. "That is a tall order, and it has led many institutional managers toward a renewed interest in developing hedge fund products."

More recently, asset managers are experiencing demand for a range of hedge fund strategies, in particular, credit-related, global macro, and event-driven. Cerulli believes that demand for these products should continue in the near term, given the low interest rate environment, ongoing global financial uncertainty, and steady merger and acquisition activity.

Press release

bc

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: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  4. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill

  5. …And Finally - Police contact Catholic Church after baffling ‘poltergeist’ report[more]

    From Telegraph.co.uk: Police officers in Scotland have called in representatives from the Catholic Church after investigating reports of “disturbing incidents” of a "poltergeist" at a family home. A mother and her teenage son were said to be “extremely distressed” after experiencing what the D