Wed, Jun 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers September 2012

Focus - Should emerging managers go to investment consultants?

Should emerging managers go to investment consultants?

As long as there is a need for expertise in any industry, there will be expert consultants offering their knowledge and services. The hedge fund industry is no different. Hedge fund consultants service hedge funds with their know-how and network - be it in investment strategy, research or marketing.

Investment consultants, which are the focus of this article, help investors, particularly institutional investors with their hedge fund allocations. Those consultants are gaining more cachet in the industry and are often directly competing with funds of hedge funds.

According a Citi Finance's survey published in June 2012, titled Institutional Investment in Hedge Funds: Evolving Investor Portfolio Construction Drives Product Convergence, global assets invested with hedge fund firms could rise from today's $2.1 trillion to more than $5 trillion as a result of two emerging trends. Firstly, institutional investors may add $1 trillion to protect against risks and get more diversification; secondly, as there may be a "convergence zone" between hedge funds and traditional assets, an additional $2 trillion could come into the hedge fund industry in the form of regulated alternatives and long-only products.

The Citi survey also observes a trend among intermediaries, such as consultants and funds of funds, in which there is also convergence.

The number of hedge funds grew by 66% from 2003 and 2007 (4,598 to 7,637), and the number of "fund of fund intermediaries" (funds of hedge funds or FoHFs), grew by 251% in this period - from 781 to 2,462 (Source: HFR). During those years, says the Citi survey, FoHFs were the primary conduit through which many institutional investors channell......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.

  2. Investing - In Amazon's shadow, hedge funds take aim at Brexit-hit retailers[more]

    From NYTimes.com: Hedge funds have significantly stepped up bets against Britain's traditional high street retailers, as the sector struggles with online competition, worries about a stretched consumer and weakening sales and profits. The risks were on full display on Tuesday when shares in Debenham

  3. ...And Finally - Nighttime barbecue festival in downtown Memphis![more]

    From Newsoftheweird.com: On May 19, Carl Webb and his wife left a nighttime barbecue festival in downtown Memphis and headed home. They drove 14 miles on an interstate highway before a police officer pulled them over to ask if Webb knew there was a body on his trunk. The man was clinging to the lip

  4. Global macro hedge funds lose on sharp drop in oil prices[more]

    Komfie Manalo, Opalesque Asia: Global macro hedge funds suffered losses due to the sharp fall in oil prices and the drop in U.S. and U.K. Treasury yields, Lyxor Asset Management said in its Weekly Briefing. The Lyxor Global Macro Index fell -1.0% from 13 June to 20 June (-3.4% YTD). The Lyxor

  5. State pension plans see liabilities increase in 2016 - Wilshire[more]

    Bailey McCann, Opalesque New York: The funding ratio of state pension plans dropped four percentage points to 69 percent in fiscal year 2016, according to Wilshire Consulting. A year ago, Wilshire Consulting's annual state funding report uncovered a funding ratio of 73 percent. "U.S. stock pe