Tue, Feb 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

17% of hedge fund managers are currently subadvisors to '40 Act multi-manager funds, survey finds

Thursday, March 20, 2014
Opalesque Industry Update - Infovest21's just-released Eighth Annual Manager Snapshot Survey provides an updated profile of the typical hedge fund manager.

The survey finds that commingled vehicles account for about 47% of the product base while customized mandates and retail products account for 37% and 11% respectively.

Only 7% of the respondents offer '40 Act mutual funds however 17% are subadvisors to a '40 Act mutual fund of funds.

Lois Peltz, president of Infovest21 and author of the report, said, "Of those not subadvising, over 60% do not plan to move in that direction in the next year. However, 27% do plan to move in that direction while another 12% are considering it. “

Of those not offering a '40 Act mutual fund, 12% said their strategy is not suitable while 8% highlighted the cost as the main reason for not taking this approach. Another 8% cited the lack of incentive fee as the primary stumbling block. Other reasons included being too small, generally not liking retail funds, daily liquidity issues or their focus being on commingled products.

Investor mix

The typical hedge fund organization's investor base includes 24% high net worth/family offices, 12% pension funds, and 11% each to financial institutions, funds of funds and foundations.

Looking out a year, managers expect high net worth/family offices, pensions and insurance companies' percentage of the investor mix to remain about the same while funds of funds' and corporations' percentages are expected to increase. The percentage for foundations and other financial institutions is expected to fall.

Large managers (those with over $1 billion in assets) had a higher percentage of pensions, endowments and foundations than smaller and medium sized managers. Medium-sized managers ($500 million to $999.9 million) had a relatively higher percentage of financial institutions while smaller managers (those with assets below $500 million) tend to have a higher percentage of family offices, funds of funds and corporate investors.

The average fee structure is a 1.5% management fee and a 16.6% performance fee.

The most-cited challenge for 2014, as cited by 48% of the managers, is growing assets.

Other details in the report include:

Topics Covered:

*Assets under management
*Length of track record
*Differentiating characteristics
*Infrastructure
*Location
*Investor base
*Most used strategies
*Portfolio composition
*Performance
*Product mix
*Terms
*Strategic changes
Historical comparison
Impact of asset size on responses

Press release

Infovest21, founded in 2000, is an information provider to hedge fund investors, managers, funds of funds and service providers. Led by Lois Peltz, president, the firm provides news, research, surveys, white papers as well as organizes seminars and conferences. The firm's focus is on hedge funds, funds of funds and '40 Act funds.

infovest21.com

Recent related coverage:
10.03.2014 White paper finds endowments' allocation to hedge funds relatively stable but role has changed

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. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  2. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  3. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  4. 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

  5. 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