Wed, Mar 29, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers July 2012

Perspectives: Recent views and findings of interest to new hedge fund managers.

Most asset inflows went to $5bn+ hedge fund firms in 2Q Investors continued to allocate new capital to the hedge fund industry in 2Q12, exhibiting a clear and continued preference for strategies with characteristically low exposure to global equity markets, according to the latest HFR Global Hedge Fund Industry Report. Investors allocated $4.1bn in net new capital to hedge funds that quarter, bringing net inflows in 1H12 to over $20bn. Despite the inflow, total hedge fund capital declined by -1.3% from $2.13tln to $2.10tln due to poor performance ( Dow Jones Credit Suisse says the industry saw estimated outflows of approximately $2.53bn in June, bringing AuM for the industry to approximately $1.73tln).

Consistent with the trend from prior quarters, 2Q12 inflows remained concentrated in the industry's largest firms, with over $11bn allocated to firms with greater than $5bn in AUM, while firms with less than $5bn experienced a net redemption of approximately $6.9bn.

No more old-style hedge funds The era of multi-billion dollar hedge funds with high fees, high portfolio, high turnover and short-term views, is over, claimed MarketWatch on July 18th, confirming what we already deduced. There are four structural reasons why the industry as we know it is dead, the article says: No. 1: The incentive structure; No. 2: The overhead; No. 3: The business model; and No. 4: No opportunity for unproven managers to get funded, as indeed big assets prefer established hedge funds. The article concludes on a hopeful tone for emerging managers, "But that's not where t......................

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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  3. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  4. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  5. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less