Mon, May 1, 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. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  3. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  4. Gondor Capital sees challenges ahead for financial markets as two hedge funds post strong gains in Q1[more]

    Komfie Manalo, Opalesque Asia: Vincent Au, portfolio manager of New York-based hedge fund firm Gondor Capital Management believes that the remaining of the year would be challenging for the financial markets even as his two hedge funds maintain

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob