Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers September 2013

News & Perspectives: Latest relevant news, views and findings

53% of surveyed managers have launched or may launch a 40 Act fund

There is a wave of hedge fund managers tackling the mutual fund industry. In the U.S., in a survey on '40 Act funds, Infovest21's "Hedge Fund Use of '40 Act Registered Investment Funds" survey found that 53% of the surveyed managers have launched a '40 Act mutual fund, are in the process of launching a '40 Act fund or are considering doing so. Another 25% are a subadvisor to a '40 Act fund or considering becoming a subadvisor. 8% have decided not to launch a '40 Act fund.

Lois Peltz, president of Infovest21, said, "The survey also found that over three-quarters of the managers said launching a '40 Act fund was worth the time and effort. The remainder of respondents said it was too early to tell."

She also observed, "Almost 30% of the respondents said they see subadvising '40 Act mutual funds as a way to build assets while another 26% said it was another way to broaden their investor base. Another 18% see '40 Act funds as a way to develop relationships while another 15% see it as way to differentiate from their peers."

Tom Florence, CEO of Denver-based 361 Capital, told Opalesque that mutual funds are here to stay.

"Mutual funds are a hard business, and they are a really different business, so hedge fund managers have to decide if they are going to go it alone or if they are going to do it with a partner who understands," he said, noting that there is an underserved investor marketplace for these products. "The challenge is there are only so many alternative assets - is there enough room for all of these funds? No. So you're going to see focus on quality and performance." (......................

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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner